The timing strategy becomes more attractive as interest rates (i.e., rates of return) increase.

Question

Quizplus · Accepted Answer

When interest rates increase, the potential return from timing strategies also increases, making them a more attractive option. This is because investors can earn a greater return by moving in and out of different investments at the right times. However, it should be noted that timing strategies can also be risky and may not always lead to gains, even if interest rates are high.

The Timing Strategy Becomes More Attractive as Interest Rates (I