A Long-Term Technique Used by Investors Who Purchase an Equal

question 105

Multiple Choice

A long-term technique used by investors who purchase an equal dollar amount of the same stock at equal intervals in time is called a

• A)dollar cost averaging.
• B)dividend reinvestment plan.
• C)buy and hold technique.
• D)regulated transaction.
• E)secured transaction.

---

Definitions:

Normal Distribution

A type of continuous probability distribution for a real-valued random variable, characterized by a bell-shaped curve, symmetrical around its mean.

Variance

A measure of the dispersion indicating how much the numbers in a data set differ from the mean of the set.

Normal Distribution

A symmetric, bell-shaped distribution of data where most of the observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Symmetric

Describes an object or figure that is identical on both sides of a central dividing line.