Market timing tends to lead to:
A)fairly consistent abnormal returns.
B)increasing profits as experience is gained.
C)superior returns but only if you are a professional money manager.
D)a rate of return roughly equal to that of the overall market.
E)underperforming the overall market.

Question

Quizplus · Accepted Answer

Market timing tends to underperform the overall market due to the difficulty in accurately predicting market movements. There is no consistent abnormal return and increasing profits as experience is gained is not guaranteed. The ability to achieve superior returns through market timing is not limited to professional money managers, but it is still challenging for even the most skilled investors.

Market Timing Tends to Lead To