Which One of the Following Statements Concerning Formula Plans Is

Multiple Choice

Which one of the following statements concerning formula plans is correct?

A) The use of subjective judgment is important to the routine administration of most formula plans.
B) Formula plans are based on the adherence to a mechanical set of rules with regard to when to buy and/or sell.
C) The objective of most formula plans is to maximize profits.
D) Securities with very stable prices are best suited to nearly all formula plans.