All categories

2 years ago

Explain the meanings of market timing and security selection, highlighting their similarities and differences.

Business

1 answer:

elena-s [515]2 years ago

8 0

<h3>What Is Market Timing?</h3>

Market timing is the act of moving investment funds into or out of financial markets – or moving funds between asset classes – based on predictive methods. If an investor can predict when the market will go up and down, they can trade to turn that market movement into a profit.

<h3>What is security selection?</h3>

Security selection is the process of determining which financial stocks to include in a particular portfolio. Good stock picks can generate profits during market ups and downs and climate losses during bear markets.

Security selection implies picking individual stocks that the fund manager expects will outperform the market as a whole. Market timing implies betting on systematic risk factors. We see that Swedish equity mutual funds engage in both these types of active behaviour.

To learn more about mutual funds from given link

brainly.com/question/14967316

#SPJ4

You might be interested in

Mooradian Corporation’s free cash flow during the just-ended year (t = 0) was $250 million, and its FCF is expected to grow at a

LenaWriter [7]

Answer:

the firm’s total corporate value is 3.500.000.000

Explanation:

Consider the following formula to calculate the corporate value of the firm

Firm Total Corporate Value =Free cash flow (T1) / Ke - G

= 250.000.000 ( 1+0.05)/12.5%-5%

= 3.500.000.000

7 0

3 years ago

Match the factors to the target capital structure preferred.

Paraphin [41]

Answer:

See below ~

Explanation:

<u>Equity Capital Structure</u>

Equity capital refers to the money owed by the owners or shareholders of the company.

Fast growing companies like software
Businesses in the growth stage
Companies with high growth rate or credibility
Companies not in a position to provide collateral

<u>Debt Capital Structure</u>

Debt capital in the capital structure of the company refers to the borrowed money at work.

Managers with conservative management style
Companies want to show high credit rating

7 0

2 years ago

M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the

MaRussiya [10]

<span>This is a modified premium life insurance policy. In this case, the premium (the price paid for the insurance during each time period) is fixed for a specific frame (at rates that are usually lower than average), but then (usually) increases after a certain number of months or years to a rate greater than the average.</span>

8 0

3 years ago

Standard Quantities Allowed of Labor and MaterialsMiel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 1

jok3333 [9.3K]

Answer:

Part I :

1) Total amount of oats allowed = 960000*16 = 15360000 ounce

2) Total amount of labor hours allowed = 960000*.04 = 38400 Hours

1) Total amount of oats allowed = 750000*17 = 12750000 ounce

2) Total amount of labor hours allowed = 750000*.04 = 30000 Hours

4 0

3 years ago

Fill in the blanks to complete the passage about the law of one price. Drag word(s) below to fill in the blank(s) in the passage

Kipish [7]

Answer:

Consider the following explanation.

Explanation:

According to the law of one price, identical goods

sold IN DIFFERENT LOCATIONS must sell for the same

price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.

Those costs reflect TRADE BARRIERS and the cost of shipping.

According to the law of one price, if the price of a good

in one location does not match the price of the same good in

a different location, sellers will increase supply

in the location where the good is MORE EXPENSIVE

until prices in both locations are equal.

5 0

3 years ago