Which of the Following Statements About Program Trading Is Incorrect

question 28

Multiple Choice

Which of the following statements about program trading is incorrect?

• A)It represents a computerized response by institutional investors to either buy or sell a large basket of stocks in response to movements in a particular stock index.
• B)It may involve the purchase of stocks that have become "underpriced."
• C)It may involve the sale of stocks that have become "overpriced."
• D)It is designed to capitalize on Federal Reserve monetary policy announcements.
• E)None of these are correct.

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Definitions:

Magnesium

A lightweight, silver-white metallic element, crucial for cellular metabolism and found in chlorophyll, often used in alloys and as a dietary supplement.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding, usually formed between metal and non-metal ions.

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its disinfectant properties and use in bleach.

Crystal Lattice

A highly ordered structure of atoms or molecules extending in three spatial dimensions.