The theory behind the variable-ratio plan is to
A) keep the unit cost of the portfolio at a constant level.
B) passively buy and hold a wide variety of securities.
C) avoid selling any security for a capital gain, and thus indefinitely avoiding the capital gains tax.
D) time the cyclical movements of the share market and thereby "buy low and sell high."

Question

Quizplus · Accepted Answer

The variable-ratio plan involves timing the market to take advantage of cyclical movements, aiming to buy securities at low prices and sell them at high prices.

The Theory Behind the Variable-Ratio Plan Is to