Investors who use analytical techniques to try to predict when prices of particular stocks are likely to rise and fall are relying on the _________ strategy.

Question

Quizplus · Accepted Answer

The market timing strategy involves trying to predict the future movement of stock prices based on various analytical techniques such as fundamental analysis, technical analysis, and quantitative analysis. The goal of market timing is to buy stocks when they are expected to rise in price and sell them when they are expected to fall. This strategy is based on the assumption that it is possible to predict the future movements of stock prices based on various factors such as economic indicators, company financial statements, and market trends. Therefore, investors who use analytical techniques to predict stock prices are relying on the market timing strategy.

Investors Who Use Analytical Techniques to Try to Predict When