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:

Standard Deviation

A statistical measure of the dispersion or variability of a data set around its mean.

Frequency Distribution

A statistical representation showing the number of instances in which a variable takes each of its possible values.

Linear Regression Line

A line that approximates the points on a scatterplot which can be used to show a trend and make predictions; also called a line of best fit or least squares line.

Scatterplot

A graph that shows the relationship of bivariate data using points on the coordinate grid.