Herwin Often Uses Statistical or Quantitative Techniques to Aid His

question 38

Multiple Choice

Herwin often uses statistical or quantitative techniques to aid his decision making process.What type of decision making is this?

• A)intuition
• B)mathematical
• C)decision tree
• D)qualitative

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Definitions:

Underlying Security

A stock, bond, commodity, or other asset upon which options and other derivatives are based or derived.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividend payments.

Common Equity

The amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.

Pre-Tax Basis

An evaluation or measure made before taxes are deducted.