Which Statement Below Is INCORRECT

question 9

Multiple Choice

Which statement below is INCORRECT?

• A) Arbitrageurs seek price discrepancies among securities and attempt to extract riskless arbitrage profits.
• B) Hedgers try to reduce risk by trading securities and are often cited as the chief reason for the existence of derivative markets.
• C) Position traders (also called trend followers)maintain speculative trading positions for longer periods of time.
• D) Scalpers open their positions in the morning,try to profit from price movements over the day,and close their positions at the end of the trading day.
• E) Speculators often take calculated risks in their pursuit of profits.

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Definitions:

Skills

The ability to do something well, often as a result of knowledge, practice, and aptitude.

Rating Scales

Rating scales are tools used to evaluate or measure the intensity, frequency, or presence of behaviors, attitudes, or other defined variables.

Behaviorists

Psychologists who focus on observable behaviors and the ways in which they're learned, rather than on mental states or processes.

Projective Tests

Psychological assessment tools where individuals reveal their unconscious feelings and thoughts through responses to ambiguous stimuli.