Question 1

Which of the following is not an advantage of technical analysis identified by technicians?

Accepted Answer

A) Fundamental analysis depends heavily on financial accounting statements. 
B) The majority of investors cannot consistently process new information correctly. 
C) Fundamental analysis may not time the investment properly when trading under- or over-valued securities. 
D) The majority of investors cannot process new information quickly enough. 
E) All of the above are advantages identified by technicians. 
A) Fundamental analysis depends heavily on financial accounting statements. 
B) The majority of investors cannot consistently process new information correctly. 
C) Fundamental analysis may not time the investment properly when trading under- or over-valued securities. 
D) The majority of investors cannot process new information quickly enough. 
E) All of the above are advantages identified by technicians.

Question 2

Technicians consider a high short interest ratio to be bearish.

Accepted Answer

A) True 
 B)False

Question 3

Technicians using the confidence index published by Barrons to make investment decisions

Accepted Answer

A) Believe the ratio is a bullish indicator because during periods of high confidence investors will invest in higher quality bonds. 
B) Believe the ratio is a bearish indicator because during periods of high confidence investors will invest in higher quality bonds. 
C) Believe the ration is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds. 
D) Believe the ration is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds. 
E) None of the above. 
A) Believe the ratio is a bullish indicator because during periods of high confidence investors will invest in higher quality bonds. 
B) Believe the ratio is a bearish indicator because during periods of high confidence investors will invest in higher quality bonds. 
C) Believe the ration is a bearish indicator because during periods of high confidence investors will invest in lower quality bonds. 
D) Believe the ration is a bullish indicator because during periods of high confidence investors will invest in lower quality bonds. 
E) None of the above.

Which of the following is not an advantage of technical analysis identified by technicians?

Technicians consider a high short interest ratio to be bearish.

Technicians using the confidence index published by Barrons to make investment decisions

The Investment Setting

The Asset Allocation Decision

Selecting Investments in a Global Market

Organization and Functioning of Securities Markets

Security-Market Indexes

Efficient Capital Markets

An Introduction to Portfolio Management

An Introduction to Asset Pricing Models

Multifactor Models of Risk and Return

Analysis of Financial Statements

Introduction to Security Valuation

Macroanalysis and Microvaluation of the Stock Market

Industry Analysis

Company Analysis and Stock Valuation

Equity Portfolio Management Strategies

Bond Fundamentals

The Analysis and Valuation of Bonds

Bond Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward and Futures Contracts

Option Contracts

Swap Contracts, Convertible Securities, and Other Embedded Derivatives

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Filters

Exam 15: Technical Analysis

Which of the following is not an advantage of technical analysis identified by technicians?

Technicians consider a high short interest ratio to be bearish.

Technicians using the confidence index published by Barrons to make investment decisions

The Investment Setting

The Asset Allocation Decision

Selecting Investments in a Global Market

Organization and Functioning of Securities Markets

Security-Market Indexes

Efficient Capital Markets

An Introduction to Portfolio Management

An Introduction to Asset Pricing Models

Multifactor Models of Risk and Return

Analysis of Financial Statements

Introduction to Security Valuation

Macroanalysis and Microvaluation of the Stock Market

Industry Analysis

Company Analysis and Stock Valuation

Equity Portfolio Management Strategies

Bond Fundamentals

The Analysis and Valuation of Bonds

Bond Portfolio Management Strategies

An Introduction to Derivative Markets and Securities

Forward and Futures Contracts

Option Contracts

Swap Contracts, Convertible Securities, and Other Embedded Derivatives

Professional Money Management, Alternative Assets, and Industry Ethics

Evaluation of Portfolio Performance

Filters