Which alternative is not true with respect to market timing?
A)It tries to increase return by trading in and out of the market over time.
B)It can increase portfolio risk.
C)Evidence shows that amateurs do it poorly,while professionals do it very well.
D)All of the above are true.

Question

Quizplus · Accepted Answer

The statement that professionals do market timing better than amateurs is not entirely true. While some professionals may have more experience and resources to analyze market trends, studies have shown that even professional fund managers fail to consistently time the markets. Additionally, the factors that impact market timing success are often outside of the control of the investor, such as unforeseeable economic events or changes in government policies. Therefore, market timing should not be a primary investment strategy for most investors.

Which Alternative Is Not True with Respect to Market Timing