Exam 7: Forecasting Share Price Movements

Proponents of the efficient market hypothesis assert that technical analysts:

Compare the two main approaches to fundamental analysis: top-down and bottom-up.

If share prices appear to follow a random walk:

The net record of a country's international earnings less its international payments is its:

Research of actively managed portfolios,managed by professional portfolio managers:

Firms that conduct business in a country's domestic market may be affected by a fall in the local exchange rate that leads to an increase in the rate of inflation.

When an investor makes their investment decision based on a company's accounting ratios,they are using:

Which of the following statements regarding an efficient capital market is correct?

A limitation of fundamental analysis is that forecasting using fundamentals can suggest the market is overvalued but does not forecast the timing of the downturn.

_______ is a mathematical technique used by technical analysts to clearly reveal all the trends in a price series.

Charting is a type of technical analysis.Explain the process in relation to forecasting share price movements.

The Elliot wave theory maintains that the bullish behaviour of the share market can be explained as:

In relation to behavioural finance,if an investor is influenced to follow other investors into certain investment opportunities,this is called:

Which of the following is NOT a problem that may be associated with rapid,unsustainable growth in an economy?

Investment analysts use a number of approaches in the analysis of fundamentals that may affect share prices.Which of the following statements in relation to the bottom-up approach to share price analysis is MOST correct? The bottom-up approach:

When the share price series breaks through a flattening moving average line from above,a technical analyst would probably suggest it is a good time to:

It may be argued that share prices on the Australian Securities Exchange (ASX)reflect all publicly available,relevant information regarding listed companies,and therefore superior profits cannot be made by an investor using publicly available information.Based on the above contention,which of the following statements best describes the informational efficiency of the ASX?

Compared with technical analysis,fundamental analysis considers the:

Consider the following five statements: i.Technical analysts rely on very sophisticated technical models of the macroeconomic environment. ii.Since all chartists are confronted with identical share price data,they should identify very similar patterns and generate identical buy and sell signals from the data. iii.A chartist will draw resistance levels at higher share price levels where an increase in supply halts price increases. iv.Chartists will draw support lines at lower price levels where an increase in demand halts a price fall. v.The random walk hypothesis,as applied to share price movements,implies that the examination of past price movements yields no useful information on the course of future price movements. How many of these statements are true and how many are false?

In relation to share trading,buy and sell orders automatically triggered by rules entered into a computer program are called: