"Buy a stock if its price moves up by 2% more than the Dow Average," is an example of a _________________.
A) filter rule
B) market anomaly
C) fundamental approach
D) passive trading strategy

Question

Quizplus · Accepted Answer

The given statement represents a filter rule, which is a type of trading strategy that involves setting a specific criteria or threshold to select stocks for investment. In this case, the rule suggests buying a stock only if its price movement is more than the Dow Average by a certain percentage. This rule filters out stocks that do not meet the criteria and helps investors narrow down their choices.

"Buy a Stock If Its Price Moves Up by 2