Question 1

Trading activity and average returns in brokerage accounts tends to be _________.

Accepted Answer

A)   uncorrelated
B)   negatively correlated
C)   positively correlated
D)   positively correlated for women and negatively correlated for menE) A) and C)
F) A) and B)

Question 2

Moving averages are ______ indicators.

Accepted Answer

A)   sentiment
B)   flow of funds
C)   trend
D)   fundamentalE) A) and C)
F) A) and B)

Question 3

Trend analysts that follow bonds are most likely to monitor the ____________.

Accepted Answer

A)   confidence index
B)   odd-lot trading
C)   short interest
D)   trin statisticE) C) and D)
F) A) and B)

Question 4

According to Kondratieff,the macroeconomy moves in a series of waves that recur at intervals of approximately _________________.

Accepted Answer

A)   18 months
B)   4 years
C)   8 years
D)   50 yearsE) All of the above
F) A) and B)

Question 5

Identify the support level stock price.

Accepted Answer

A)   $40
B)   $42
C)   $44
D)   $46E) A) and C)
F) B) and C)

Question 6

In 1997 CSX successfully purchased a significant share of Conrail.Immediately after the first offer was announced and the acquisition eventually consummated,the price of CSX fell below pre-acquisition levels and took many years to recover.This may be an example of ________________.

Accepted Answer

A)   loss aversion
B)   mental accounting
C)   overreaction
D)   managerial overconfidenceE) B) and C)
F) A) and D)

Question 7

On day 1,the stock price of Ford was $81 and the automotive stock index was 324.On day 2,the stock price of Ford was $85 and the automotive stock index was 335.Consider the ratio of Ford to the automotive stock index at day 1 and day 2.Ford is __________ the automotive industry and technical analysts who follow relative strength would advise __________ the stock.

Accepted Answer

A)   outperforming, buying
B)   outperforming, selling
C)   underperforming, buying
D)   underperforming, sellingE) A) and D)
F) A) and B)

Question 8

The moving average generates buy signal(s)

Accepted Answer

A)   on days 3, 11 and 15
B)   on days 2 and 16
C)   on days 5, 9 and 13
D)   on no daysE) All of the above
F) A) and B)

Question 9

From day one to day four,the Trin has ___ and is ___.

Accepted Answer

A)   increased, bullish
B)   increased, bearish
C)   decreased, bullish
D)   decreased, bearishE) B) and D)
F) B) and C)

Question 10

An accumulation of cash by mutual funds may be viewed by technical traders as a __________ indicator.

Accepted Answer

A)   bullish
B)   neutral
C)   bearish
D)   trend reversalE) B) and C)
F) All of the above

Question 11

When technical analysts say a stock has good "relative strength",they mean that in the recent past __________.

Accepted Answer

A)   it has performed well compared to its closest competitors
B)   it has exceeded its own historical high
C)   trading volume in the stock has exceeded the normal trading volume
D)   it has outperformed the market indexE) B) and D)
F) A) and B)

Question 12

A _________ is a value above which it is difficult for the market to rise.

Accepted Answer

A)   book value
B)   resistance level
C)   support level
D)   confidence levelE) B) and C)
F) A) and C)

Question 13

According to market technicians a trin statistic of less than 1.0 is considered as a __________.

Accepted Answer

A)   bearish signal
B)   bullish signal
C)   volume decline
D)   signal reversalE) C) and D)
F) All of the above

Question 14

According to the Dow Theory,secondary trends are _________________.

Accepted Answer

A)   points of trend reversals
B)   daily fluctuations which are of little importance
C)   short-term deviations from the underlying price trend line
D)   long-term price movements lasting from months to yearsE) B) and D)
F) A) and B)

Question 15

The Breadth on day three is _______.

Accepted Answer

A)   -70
B)   10
C)   90
D)   170E) B) and C)
F) A) and C)

Question 16

The moving average generates sell signals

Accepted Answer

A)   on days 3, 11 and 15
B)   on days 7, 15, and 18
C)   on days 5, 9 and 13
D)   on day 16E) B) and D)
F) A) and B)

Question 17

The only way for behavioral patterns to persist in prices is if ______________.

Accepted Answer

A)   markets are not weak form efficient
B)   there are limits to arbitrage activity
C)   there are no significant trading costs
D)   market psychology is inconsistent over timeE) A) and B)
F) A) and C)

Question 18

According to the Dow Theory,tertiary trends are _________________.

Accepted Answer

A)   points of trend reversals
B)   daily fluctuations which are of little importance
C)   short-term deviations from the underlying price trend line
D)   long-term price movements lasting from months to yearsE) All of the above
F) C) and D)

Question 19

In the context of a point and figure chart,a horizontal band of Xs and Os is a _____________.

Accepted Answer

A)   buy signal
B)   sell signal
C)   congestion area
D)   trend reversalE) All of the above
F) A) and B)

Question 20

The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the __________.

Accepted Answer

A)   bond price index
B)   confidence index
C)   relative strength index
D)   trin ratioE) None of the above
F) B) and C)

Exam 9: Behavioral Finance and Technical Analysis

In the context of a point and figure chart,a horizontal band of Xs and Os is a _____________.

Correct Answer
verified

An accumulation of cash by mutual funds may be viewed by technical traders as a __________ indicator.

Correct Answer
verified

The only way for behavioral patterns to persist in prices is if ______________.

Correct Answer
verified

The moving average generates sell signals

Correct Answer
verified

Correct Answer
verified

From day one to day four,the Trin has _ and is _.

Correct Answer
verified

The Breadth on day three is _______.

Correct Answer
verified

According to the Dow Theory,secondary trends are _________________.

Correct Answer
verified

Trading activity and average returns in brokerage accounts tends to be _________.

Correct Answer
verified

According to Kondratieff,the macroeconomy moves in a series of waves that recur at intervals of approximately _________________.

Correct Answer
verified

According to market technicians a trin statistic of less than 1.0 is considered as a __________.

Correct Answer
verified

The moving average generates buy signal(s)

Correct Answer
verified

Trend analysts that follow bonds are most likely to monitor the ____________.

Correct Answer
verified

According to the Dow Theory,tertiary trends are _________________.

Correct Answer
verified

The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the __________.

Correct Answer
verified

When technical analysts say a stock has good "relative strength",they mean that in the recent past __________.

Correct Answer
verified

A _________ is a value above which it is difficult for the market to rise.

Correct Answer
verified

Moving averages are ______ indicators.

Correct Answer
verified

In 1997 CSX successfully purchased a significant share of Conrail.Immediately after the first offer was announced and the acquisition eventually consummated,the price of CSX fell below pre-acquisition levels and took many years to recover.This may be an example of ________________.

Correct Answer
verified

Identify the support level stock price.

Correct Answer
verified

Exam 9: Behavioral Finance and Technical Analysis

In the context of a point and figure chart,a horizontal band of Xs and Os is a _____________.

Correct AnswerverifiedShow Answer

An accumulation of cash by mutual funds may be viewed by technical traders as a __________ indicator.

Correct AnswerverifiedShow Answer

The only way for behavioral patterns to persist in prices is if ______________.

Correct AnswerverifiedShow Answer

The moving average generates sell signals

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

From day one to day four,the Trin has ___ and is ___.

Correct AnswerverifiedShow Answer

The Breadth on day three is _______.

Correct AnswerverifiedShow Answer

According to the Dow Theory,secondary trends are _________________.

Correct AnswerverifiedShow Answer

Trading activity and average returns in brokerage accounts tends to be _________.

Correct AnswerverifiedShow Answer

According to Kondratieff,the macroeconomy moves in a series of waves that recur at intervals of approximately _________________.

Correct AnswerverifiedShow Answer

According to market technicians a trin statistic of less than 1.0 is considered as a __________.

Correct AnswerverifiedShow Answer

The moving average generates buy signal(s)

Correct AnswerverifiedShow Answer

Trend analysts that follow bonds are most likely to monitor the ____________.

Correct AnswerverifiedShow Answer

According to the Dow Theory,tertiary trends are _________________.

Correct AnswerverifiedShow Answer

The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10 intermediate-grade bonds is called the __________.

Correct AnswerverifiedShow Answer

When technical analysts say a stock has good "relative strength",they mean that in the recent past __________.

Correct AnswerverifiedShow Answer

A _________ is a value above which it is difficult for the market to rise.

Correct AnswerverifiedShow Answer

Moving averages are ______ indicators.

Correct AnswerverifiedShow Answer

In 1997 CSX successfully purchased a significant share of Conrail.Immediately after the first offer was announced and the acquisition eventually consummated,the price of CSX fell below pre-acquisition levels and took many years to recover.This may be an example of ________________.

Correct AnswerverifiedShow Answer

Identify the support level stock price.

Correct AnswerverifiedShow Answer

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From day one to day four,the Trin has _ and is _.

Correct Answer
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