Question: Why is the correct answer not A? Question 2 1 points Saved Suppose you want to sell 100,000 shares of stock XYZ on their earnings

Why is the correct answer not A?

Why is the correct answer not A? Question 2 1
Question 2 1 points Saved Suppose you want to sell 100,000 shares of stock XYZ on their earnings announcement day. Your broker provides you some impact-driven type algos. On a normal day, the trading volume is around 500,000 for XYZ. On a typical earnings announcement day, the volume can double or treble but it always has a similar distribution of trading volume across time intervals. Which of the following statement is correct? A. If you use a VWAP algo for the day and set your historical volume profile based on a normal trading day, then you will finish selling 100,000 shares a lot earlier than expected. O B. If you use a 3-hour uniform TWAP algo, then you should have executed 25% of the order after half an hour. O c. If you use a POV algo with a 20% participation rate, then you will finish selling 100,000 shares a lot earlier than expected. O D. None of the above

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