Ted Is an Engineer for True Tech and Has Just

question 73

Multiple Choice

Ted is an engineer for True Tech and has just discovered a revolutionary method for strengthening metals.He knows this knowledge will add value to True Tech's stock.Ted happens to mention this discovery and its value to his neighbor,Fred.Fred can be charged with insider trading if he:

• A)continues to hold the True Tech shares of stock he already owns.
• B)shares this information with another neighbor.
• C)sells his shares in True Tech immediately after the news of the discovery is announced.
• D)provides this information to a friend who will trade the stock and split the profits with him.
• E)buys shares in True Tech immediately after the news is announced and then shortly thereafter sells the shares at a profit.

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Definitions:

Mean Absolute Deviation

A measure of variability that shows the average distance between each data point and the mean of the dataset.

Assignable Variation

Variation in a process that can be traced to specific causes, as opposed to random variation.

Specific Events

Distinct occurrences or outcomes with defined characteristics, often analyzed in probability and statistical studies.

Chance Variation

Random fluctuations in data or experimental results due to unpredictable factors.