Computer-Driven Investment Models Can Be Very Effective When the Market

question 83

Multiple Choice

Computer-driven investment models can be very effective when the market behaves as it has in the past. However, in terms of historical consistency, they are vulnerable to failure in the face of:

• A) brute force attacks.
• B) black swans.
• C) zero-day exploits.
• D) calendar rivalry metrics.
• E) distributed denial of service.

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Definitions:

Rate of Return

The earnings or losses realized from an investment for a certain period, presented as a proportion of the investment's original expenditure.

First Dividends

The initial distribution of earnings declared by a company to its shareholders.

Constant Dividend

A dividend policy in which a firm aims to distribute a fixed amount or a stable dividend to shareholders per share, unaffected by fluctuations in its earnings or profits.

Required Rate of Return

The minimum expected rate of return on an investment, deemed necessary to compensate for its risk.