The market timing form of active portfolio management relies on __________ forecasting and the security selection form of active portfolio management relies on __________ forecasting.
A) macroeconomic; macroeconomic
B) macroeconomic; microeconomic
C) microeconomic; macroeconomic
D) microeconomic; microeconomic

Question

Quizplus · Accepted Answer

The market timing form of active portfolio management relies on macroeconomic forecasting, while the security selection form of active portfolio management relies on microeconomic forecasting. Therefore, option B, which suggests macroeconomic forecasting for market timing and microeconomic forecasting for security selection, is the correct answer.

The Market Timing Form of Active Portfolio Management Relies on __________