Which of the Following Methods of Security Analysis Involves the Use

question 36

Multiple Choice

Which of the following methods of security analysis involves the use of a computer program to imitate the brain?

• A) Decision trees
• B) Program trading
• C) Day traders
• D) Neural networks

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Definitions:

Basic Earnings

The amount of profit earned by a company on a per-share basis, before any deductions or adjustments.

Noncumulative

Pertains to dividends that, if missed by a company, are not required to be paid out to shareholders in the future.

Diluted Earnings Per Share

A calculation of earnings per share that includes potential shares from convertible securities, providing a "worst-case" scenario of earnings per share.

Basic Earnings

The amount of profit attributable to shareholders before deductions for preferred dividends, calculated on a per-share basis.