What is usually considered the biggest risk of market timing?
A)getting out of the market too soon
B)high transactions costs
C)failing to adjust for short-term corrections
D)not being in the market at critical times

Question

Quizplus · Accepted Answer

Not being in the market at critical times is considered the biggest risk of market timing. This is because it is difficult to accurately predict when the market will experience significant gains, and if an investor is not in the market during these times, they may miss out on significant returns. Getting out of the market too soon, high transaction costs, and failing to adjust for short-term corrections are also risks associated with market timing, but not considered as significant as missing critical market opportunities.

What Is Usually Considered the Biggest Risk of Market Timing