When Institutional Money Managers Use Their Computers to Decide on Large

question 174

Multiple Choice

When institutional money managers use their computers to decide on large sales or purchases in the stock market, they are employing

• A)the herd instinct.
• B)the bandwagon effect.
• C)program trading.
• D)stock watering.

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Definitions:

Time Series

Time Series refers to a sequence of data points collected or recorded at successive time intervals, often analyzed to predict future values or understand trends.

Seasonal Variation

Fluctuations in data or activity levels that occur regularly based on seasonal factors, such as weather, holidays, or school schedules.

Time Series Analysis

Time Series Analysis involves statistical techniques for analyzing time series data in order to extract meaningful statistics and characteristics of the data over time.

Five-period Moving Average

A type of moving average that calculates the average of the most recent five periods or intervals, used in time series analysis to smooth data.