A retail investor sells out of equities after a sharp market drop, planning to reinvest “once things feel more stable.” Over the next year, the market experiences several large positive daily returns early in the recovery, but the investor remains in cash and only re-enters after much of the rebound has occurred. Which statement BEST reflects the evidence discussed in the lecture regarding market timing?多项选择题

a. The importance of “time in the market” applies mainly to passive buy-and-hold investors; active investors can largely neutralise timing risk through tactical allocation decisions.

b. Missing a small number of the very best days can be offset if the investor also manages to avoid a similar number of the worst days, so the net impact on long-run returns is usually limited.

c. Missing just a handful of the strongest positive days can materially reduce long-term equity returns, and attempts to time the worst days often result in being out of the market during some of the best days.

d. Market timing errors primarily affect short-term volatility, while long-run wealth outcomes are driven almost entirely by fee levels and asset allocation, regardless of entry and exit points.

e. Skilled market timers can systematically avoid most of the worst days, so the main risk of timing is small relative to the potential benefits.