The ____ strategy avoids the risks and responsibilities of investment timing because the stock purchases are made regularly regardless of the price.
A)dollar-cost averaging
B)asset allocation
C)modern portfolio theory
D)portfolio diversification

Question

Quizplus · Accepted Answer

The strategy described in the question is known as dollar-cost averaging, where an investor invests a fixed amount of money at regular time intervals, regardless of the market price. This helps in reducing the risk associated with market timing and results in a lower average cost per share over time. Option B, C, and D are not relevant to the described investment strategy.

The ____ Strategy Avoids the Risks and Responsibilities of Investment