Unit #20

Dollar cost average Involves

Investing a set amount of money each interval, And dollar cost averaging the same dollar amount is invested each interval

Market timing is normally associated with which of the following portfolio management style

Tactical asset allocation, Tactical asset allocation yeah what yeah which attempt to capitalize on short term market swings is a market timing strategy

The purpose of portfolio rebalancing is used to make sure that

The percentage of the portfolio invested in various asset classes remains constant

The capital asset pricing model is most commonly used to determine and investors

Expected return

Which of the following is not associated with passive investment management approaches

Goal of beating the market, Proponents of a passive management approach believe in the random walk theory that any information that could affect the stock price is reflected in its price

Which of the following are this disadvantages of index investing relative to active portfolio management

Index portfolios restrict the universe of potential investments, index portfolios may not represent optimal performance for a specific investor

A mutual fund investor is using dollar cost averaging strategy for the average price per share to exceed the investors average costs which of the following conditions must be present

The market price per share fluctuates with each purchase, a fixed dollar amount is invested at regular intervals

What is the purpose of dollar cost averaging

To reduce the investors average cost to acquire a security over the buying. Relative to its average price

Which form of efficient market hypothesis EHM suggest that fundamental analysis's and insider information May produce above market returns

Weak