Which investment strategy is least appropriate for an uninformed inves

QUESTION

Which investment strategy is least appropriate for an uninformed investor who wants to use a discount online broker?

A) investing for income
B) buying and holding
C) investing for growth
D) market timing
E) value investing

ANSWER

Answer: D
Explanation: D) Market timing may be the most difficult of all investment strategies. It requires knowledge and sophisticated analytical tools (not offered by discount online brokers) and frequent trading (which incurs high commission costs).