Which One of the Following Statements Concerning Formula Plans Is

question 92

Multiple Choice

Which one of the following statements concerning formula plans is correct?

• A) The use of subjective judgment is important to the routine administration of most formula plans.
• B) Formula plans are based on the adherence to a mechanical set of rules with regard to when to buy and/or sell.
• C) The objective of most formula plans is to maximize profits.
• D) Securities with very stable prices are best suited to nearly all formula plans.

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Definitions:

Density

A measure of mass per unit volume of a substance, often expressed in grams per cubic centimeter or kilograms per cubic meter.

Volume

The volume is the space filled by an object or substance, or the space encased by a container.

Sample

A portion or quantity of material taken from a larger body for the purpose of analysis or testing.