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.

---

Definitions:

Points-of-difference

Unique attributes or features that set a product, service, or brand apart from its competitors in the eyes of the target market.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool used to determine how changes in costs and volume affect a company's operating income and net income.

Diversified Market

A market characterized by a variety of products, services, and players, aiming to reduce risks and cater to different customer segments.

CVPs

Short for Customer Value Propositions, which are statements that explain how a product or service solves customers' problems, meets their needs, or improves their situation.