The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Which one of the following is largely based on forecasts of macroeconomic factors?
A) Security selection
B) Passive investing
C) Market efficiency
D) Market timing

Question

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below. 
-Which one of the following is largely based on forecasts of macroeconomic factors?
A) Security selection 
B) Passive investing 
C) Market efficiency 
D) Market timing

Quizplus · Accepted Answer

Market timing is largely based on forecasts of macroeconomic factors, as it involves attempting to predict the direction of the overall market based on economic indicators and other macro factors. Security selection, passive investing, and market efficiency do not necessarily rely on macroeconomic forecasts.

The Risk Free Rate, Average Returns, Standard Deviations and Betas