Question

Mrs. Jamieson, a retiree, likes to invest in preferred stocks and bonds as it involves very little risk. She knows that the value of many of these stocks will not increase drastically, but the small returns help supplement her pension. Mrs. Jamieson's approach is an example of the market timing strategy. True or false?

Answer 1

Answer:

False

Explanation:

Market timing refers to the process of buying and selling an asset on the best moment during a period of time, so the profit made is the best possible on that period, it not necessarily happens when an investment is made in lower risk assets. For example an asset value on January 1st was 100 you sold it on January 15th for 150 so your profit was 50, that asset closed at 120 on January 31st so you had a very good timing selling on 15th