A market timing strategy is one where asset allocation in the stock market __________ when one forecasts the stock market will outperform treasury bills.
A) decreases
B) increases
C) remains the same
D) may increase or decrease

Question

Quizplus · Accepted Answer

A market timing strategy involves adjusting asset allocation in anticipation of market movements. If one forecasts the stock market will outperform treasury bills, they will increase their allocation to stocks, making choice B the correct answer.

A Market Timing Strategy Is One Where Asset Allocation in the Stock