Question 1

According to Dow theory there are _____ key forces which simultaneously affect stock prices.

Accepted Answer

A)   2
B)   3
C)   4
D)   5E) B) and C)
F) All of the above

Question 2

The ratio of (the average yield on 10 top-rated corporate bonds/the average yield on 10 intermediate-grade bonds) is called _________.

Accepted Answer

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

Question 3

The Dow theory posits that the three forces that simultaneously affect stock prices are ____________.
I.primary trend
II.intermediate trend
III.momentum trend
IV.minor trend
V.contrarian trend

Accepted Answer

A)   I,II,and III
B)   II,III,and IV
C)   III,IV and V
D)   I,II,and IV
E)   I,III,and VF) A) and E)
G) B) and C)

Question 4

According to Dow theory,tertiary trends are __________________.

Accepted Answer

A)   daily fluctuations which are of little importance
B)   short-term deviations from the underlying price trend line
C)   long-term price movements lasting from months to years
D)   none of theseE) All of the above
F) B) and C)

Question 5

__________ was the grandfather of technical analysis.

Accepted Answer

A)   Harry Markowitz
B)   William Sharpe
C)   Charles Dow
D)   Benjamin Graham
E)   none of theseF) C) and E)
G) B) and D)

Question 6

The put/call ratio is computed as ____________ and higher values are considered ____________ signals.

Accepted Answer

A)   the number of outstanding put options divided by outstanding call options;bullish or bearish
B)   the number of outstanding put options divided by outstanding call options;bullish
C)   the number of outstanding put options divided by outstanding call options;bearish
D)   the number of outstanding call options divided by outstanding put options;bullish
E)   the number of outstanding call options divided by outstanding put options;bearishF) None of the above
G) A) and B)

Question 7

_____________ on the Dow theory.

Accepted Answer

A)   The Elliot wave theory is a recent variation
B)   the theory of Kondratieff waves is a recent variation
C)   both the Elliot wave theory and the theory of Kondratieff waves are recent variations
D)   neither the Elliot wave theory and theory of Kondratieff waves are recent variationsE) A) and D)
F) None of the above

Question 8

According to the odd-lot theory,an odd-lot trading index of less than 1.0 is considered as a __________.

Accepted Answer

A)   bearish signal
B)   bullish signal
C)   bearish signal by some technical analysts and as a bullish signal by other technical analysts
D)   none of theseE) C) and D)
F) None of the above

Question 9

Technical traders view mutual fund investors as __________ market timers.

Accepted Answer

A)   excellent
B)   mediocre
C)   neutral
D)   poorE) None of the above
F) B) and D)

Question 10

Generally,academics reject technical analysis as a means of forecasting security prices.Give some reasons to support this position and suggest some possible defenses of the approach.

Accepted Answer

The notion is contrary to the weak form ...

Question 11

A long term movement of prices,lasting from several months to years is called __________.

Accepted Answer

A)   a minor trend
B)   an intermediate trend
C)   a primary trend
D)   none of theseE) B) and C)
F) A) and D)

Question 12

On a particular day,there were odd-lot sales of 805,000 on the TSX and 948,000 odd-lot purchases.The odd-lot trading index is __________.

Accepted Answer

A)   0.46
B)   0.54
C)   0.85
D)   1.18E) B) and C)
F) A) and B)

Question 13

The advance-decline line is constructed by plotting __________________.

Accepted Answer

A)   the number of advancing stocks against the number of declining stocks
B)   the number of advancing stocks and the number of declining stocks against time
C)   the number of advancing stocks minus the number of declining stocks against time
D)   the cumulative total of advances minus declines against timeE) A) and B)
F) All of the above

Question 14

An important assumption underlying the use of technical analysis techniques is that _________________.

Accepted Answer

A)   security prices adjust rapidly to new information
B)   security prices adjust gradually to new information
C)   security dealers will provide enough liquidity to keep price changes relatively small
D)   all investors have immediate and costless access to informationE) All of the above
F) C) and D)

Question 15

A trin ratio of less than 1.0 is considered as a _________.

Accepted Answer

A)   bearish signal
B)   bullish signal
C)   bearish signal by some technical analysts and as a bullish signal by other technical analysts
D)   none of theseE) B) and C)
F) All of the above

Question 16

An accumulation of credit balances in brokerage accounts is viewed by technical traders as a __________ indicator.

Accepted Answer

A)   bullish
B)   neutral
C)   bearish
D)   none of theseE) None of the above
F) A) and B)

Question 17

According to technical analysts,a shift in market fundamentals will ___________.

Accepted Answer

A)   be reflected in stock prices immediately
B)   lead to a gradual price change that can be recognized as a trend
C)   lead to high volatility in stock market prices
D)   do none of theseE) B) and D)
F) B) and C)

Question 18

If a person gives too much weight to recent information compared to prior beliefs,they would make ________ errors.

Accepted Answer

A)   framing
B)   selection bias
C)   overconfidence
D)   conservatism
E)   forecastingF) A) and B)
G) All of the above

Question 19

According to Dow theory,secondary trends are _________________.

Accepted Answer

A)   daily fluctuations which are of little importance
B)   short-term deviations from the underlying price trend line
C)   long-term price movements lasting from months to years
D)   none of theseE) A) and B)
F) None of the above

Question 20

At the end of July,the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 7.65% and 8.48% respectively.At the end of August,the average yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6.31% and 6.71% respectively.The confidence index __________ during August and technical analysts are likely to be ________.

Accepted Answer

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

Exam 10: Bond Prices and Yield

Technical traders view mutual fund investors as __________ market timers.

Correct Answer
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The Dow theory posits that the three forces that simultaneously affect stock prices are ____________. I.primary trend II.intermediate trend III.momentum trend IV.minor trend V.contrarian trend

Correct Answer
verified

According to the odd-lot theory,an odd-lot trading index of less than 1.0 is considered as a __________.

Correct Answer
verified

The advance-decline line is constructed by plotting __________________.

Correct Answer
verified

A trin ratio of less than 1.0 is considered as a _________.

Correct Answer
verified

_____________ on the Dow theory.

Correct Answer
verified

According to Dow theory there are _____ key forces which simultaneously affect stock prices.

Correct Answer
verified

If a person gives too much weight to recent information compared to prior beliefs,they would make ________ errors.

Correct Answer
verified

According to technical analysts,a shift in market fundamentals will ___________.

Correct Answer
verified

Correct Answer
verified

Generally,academics reject technical analysis as a means of forecasting security prices.Give some reasons to support this position and suggest some possible defenses of the approach.

Correct Answer
verified
The notion is contrary to the weak form ...
View Answer

The ratio of (the average yield on 10 top-rated corporate bonds/the average yield on 10 intermediate-grade bonds) is called _________.

Correct Answer
verified

According to Dow theory,tertiary trends are __________________.

Correct Answer
verified

A long term movement of prices,lasting from several months to years is called __________.

Correct Answer
verified

An accumulation of credit balances in brokerage accounts is viewed by technical traders as a __________ indicator.

Correct Answer
verified

The put/call ratio is computed as and higher values are considered signals.

Correct Answer
verified

On a particular day,there were odd-lot sales of 805,000 on the TSX and 948,000 odd-lot purchases.The odd-lot trading index is __________.

Correct Answer
verified

According to Dow theory,secondary trends are _________________.

Correct Answer
verified

An important assumption underlying the use of technical analysis techniques is that _________________.

Correct Answer
verified

__________ was the grandfather of technical analysis.

Correct Answer
verified

Exam 10: Bond Prices and Yield

Technical traders view mutual fund investors as __________ market timers.

Correct AnswerverifiedShow Answer

The Dow theory posits that the three forces that simultaneously affect stock prices are ____________. I.primary trend II.intermediate trend III.momentum trend IV.minor trend V.contrarian trend

Correct AnswerverifiedShow Answer

According to the odd-lot theory,an odd-lot trading index of less than 1.0 is considered as a __________.

Correct AnswerverifiedShow Answer

The advance-decline line is constructed by plotting __________________.

Correct AnswerverifiedShow Answer

A trin ratio of less than 1.0 is considered as a _________.

Correct AnswerverifiedShow Answer

_____________ on the Dow theory.

Correct AnswerverifiedShow Answer

According to Dow theory there are _____ key forces which simultaneously affect stock prices.

Correct AnswerverifiedShow Answer

If a person gives too much weight to recent information compared to prior beliefs,they would make ________ errors.

Correct AnswerverifiedShow Answer

According to technical analysts,a shift in market fundamentals will ___________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Generally,academics reject technical analysis as a means of forecasting security prices.Give some reasons to support this position and suggest some possible defenses of the approach.

Correct AnswerverifiedThe notion is contrary to the weak form ...View AnswerShow Answer

The ratio of (the average yield on 10 top-rated corporate bonds/the average yield on 10 intermediate-grade bonds) is called _________.

Correct AnswerverifiedShow Answer

According to Dow theory,tertiary trends are __________________.

Correct AnswerverifiedShow Answer

A long term movement of prices,lasting from several months to years is called __________.

Correct AnswerverifiedShow Answer

An accumulation of credit balances in brokerage accounts is viewed by technical traders as a __________ indicator.

Correct AnswerverifiedShow Answer

The put/call ratio is computed as ____________ and higher values are considered ____________ signals.

Correct AnswerverifiedShow Answer

On a particular day,there were odd-lot sales of 805,000 on the TSX and 948,000 odd-lot purchases.The odd-lot trading index is __________.

Correct AnswerverifiedShow Answer

According to Dow theory,secondary trends are _________________.

Correct AnswerverifiedShow Answer

An important assumption underlying the use of technical analysis techniques is that _________________.

Correct AnswerverifiedShow Answer

__________ was the grandfather of technical analysis.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The notion is contrary to the weak form ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The put/call ratio is computed as and higher values are considered signals.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified