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) over-engineering.
E) distributed denial of service.

Question

Quizplus · Accepted Answer

Computer-driven investment models rely heavily on historical data and patterns to make predictions about future market behavior. However, black swan events, which are rare and unpredictable events that have a significant impact on the market, cannot be predicted based on past data. Therefore, computer-driven investment models can easily fail in the face of black swan events. The other options listed are related to cybersecurity and not directly relevant to the effectiveness of investment models.

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