Which of the Following Statements About Program Trading Is Incorrect

Which of the following statements about program trading is incorrect?

A) It represents a computerized response by institutional investors to either buy or sell a large basket of stocks in response to movements in a particular stock index.
B) It may involve the purchase of stocks that have become "underpriced."
C) It may involve the sale of stocks that have become "overpriced."
D) It is designed to capitalize on Federal Reserve monetary policy announcements.
E) None of these are correct.

Correct Answer:

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