According to contrary opinion technicians, the ratio of mutual funds cash to total assets ____ near troughs in the market cycle and ____ near peaks.
A) levels out, spikes
B) remains low, remains high
C) is published near, is not published
D) increases, decreases
E) decreases, increases

Question

Quizplus · Accepted Answer

Contrary opinion technicians believe that the ratio of mutual funds cash to total assets increases near market troughs, as funds build up cash reserves in anticipation of future opportunities, and decreases near market peaks, as funds have invested more heavily in securities.

According to Contrary Opinion Technicians, the Ratio of Mutual Funds