Program trading
A)is commonly used to reduce the susceptibility of a stock portfolio to stock market movements.
B)may involve the purchase of stocks that become "underpriced."
C)may involve the sale of stocks that become "overpriced."
D)can be combined with the trading of individual bonds to create portfolio insurance.
E)none of the above

Question

Quizplus · Accepted Answer

Program trading is often used to hedge against market movements, reducing the susceptibility of a stock portfolio to such fluctuations.

Program Trading