20
QuizMultiple Choice

Investment Data — Quiz

Question 20 • Financial Math

What is a potential confounding variable that could be influencing the rise in TechVision Inc.'s stock price?

Answer
A
the timing of quarterly earnings reports
B
the number of competitors entering the market
C
the overall increasing demand for tech stocks due to global digitalization efforts
D
the company's marketing strategies during the product launch

Explanation

A confounding variable is an outside factor that could affect the stock price alongside the factor being studied. Global digitalization may increase demand for tech stocks broadly, raising TechVision’s price even if the company-specific event being examined is not the sole cause. Therefore, the potential confounder is the overall increasing demand for tech stocks due to global digitalization efforts.

AI-written and checked against the verified answer.

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