One of your clients calls and is unhappy about the transaction costs in their account over the course of the last year. You go over their statements and activity for the year and discuss solutions with the customer. The customer expresses their feelings that movements in the market are rational and tied to various factors, but that predicting future movements is, for the most part, futile. What investment strategy would be BEST for this client with this information in mind

Answers

Answer 1

Answer: [C] The RR should suggest that the client use a buy and hold strategy.

Explanation:

The options are:

A. The RR should suggest that the client use a combination of tactical and strategic asset allocations.

[B] The RR should suggest that the client try to time the market, taking advantage of gains and losses in individual securities.

[C] The RR should suggest that the client use a buy and hold strategy.

[D] The RR should suggest that the client engage in day trading to take advantage of daily fluctuations in the markets.

The jnvestment strategy that would be best for this client with this information in mind is that the RR should suggest that the client use a buy and hold strategy.

The buy and hold strategy, is a strategy whereby a customer purchases a security and expects it to rise in value. In this case, the transaction cost is a source of concern to the client, and since we are also informed that it's futile to make predictions about the movements in the market

Therefore, the investment strategy that should be used will be buy and hold strategy.


Related Questions

_____ is the most common form of business ownership.

A - Sole proprietorship
B - Partnership
C - Corporation
D - Limited liability company

Answers

The answer is "Sole proprietorship"

Hope this helps! :D

Answer:

A. Sole proprietorship

                                                         

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