The objective of the market timing strategy is to:
A) predict changes in stock prices in order to earn a quick profit by buying low and selling high.
B) minimize risk by getting completely out of the stock market when stock prices fall and investing heavily once prices begin to rise.
C) quickly identify new companies with long-term growth potential and buy their stock before other investors notice them.
D) hold a diversified portfolio of stocks for a long period of time in order to take advantage of the long-run upward trend in the stock market.
Correct Answer:
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