When Institutional Money Managers Use Their Computers to Decide on Large

question 174

Multiple Choice

When institutional money managers use their computers to decide on large sales or purchases in the stock market, they are employing

• A)the herd instinct.
• B)the bandwagon effect.
• C)program trading.
• D)stock watering.

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Definitions:

Sales

Sales pertain to the revenue a company generates through the selling of goods or services to its customers.

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by the investor's risk tolerance and alternative investment options.

Unit Selling Price

The amount of money charged to the customer for a single unit of product or service.

Unit Variable Cost

The variable cost associated with the production of one unit of a product or service.