Expert Networks Consisting of Managers or Executives of a Publicly

question 42

Multiple Choice

Expert networks consisting of managers or executives of a publicly traded company who are hired as consultants ("experts") by a hedge fund to provide insight about the company

• A)are illegal under Regulation FD.
• B)are legitimate if the consultants divulge only information that is already public.
• C)have raised concerns that the consultants provide inside information.
• D)are legitimate if the consultants divulge only information that is already public AND have raised concerns that the consultants provide inside information.

---

Definitions:

Computer-Consulting

A service field that provides expert advice and solutions in information technology to businesses and individuals.

Variance

A measure of the dispersion or spread of a set of data points, reflecting how much the data points differ from the mean.

Binomial Experiment

A statistical experiment that fits the binomial distribution; characterized by having a fixed number of trials, distinct outcomes (success or failure), independence, and constant probability of success.

Variance

A measure of the dispersion or spread of a set of values, indicating how much they differ from the average of the set.