Which of the Following Have Been Offered as Factors Contributing

question 7

Multiple Choice

Which of the following have been offered as factors contributing to the market crash of 1987?
I.requirement for only a 10 percent cash payment to purchase a stock
II.program trading
III.irrational investors
IV.preceeding bear market

• A)I and III only
• B)I and IV only
• C)II and III only
• D)I, II, and III only
• E)I, II, and IV only

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Definitions:

Irrational

A type of number that cannot be expressed as a simple fraction, including numbers like \(\pi\) and \(\sqrt{2}\).

Rational

Pertaining to a number or expression that can be expressed as the quotient or ratio of two integers.

Square Root

The number that produces a specified quantity when multiplied by itself (e.g., the square root of 9 is 3).

Exponents

A mathematical notation indicating the number of times a quantity is multiplied by itself.