Question 1

A moving average of stock prices ________.

Accepted Answer

A)  always lies above the most recent price 
B)  always lies below the most recent price 
C)  is less volatile than the actual prices 
D)  is more volatile than the actual prices 
A)  always lies above the most recent price 
B)  always lies below the most recent price 
C)  is less volatile than the actual prices 
D)  is more volatile than the actual prices

Question 2

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 information 
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 information

Question 3

Identify the resistance-level stock price.

Accepted Answer

A)  $40 
B)  $42 
C)  $44 
D)  $46 
A)  $40 
B)  $42 
C)  $44 
D)  $46

Question 4

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

Question 5

If the utility you derive from your next dollar of wealth increases by less than a loss of a dollar reduces it, you are exhibiting ________.

Accepted Answer

A)  loss aversion 
B)  regret avoidance 
C)  mental accounting 
D)  framing bias 
A)  loss aversion 
B)  regret avoidance 
C)  mental accounting 
D)  framing bias

Question 6

From day 1 to day 4, the confidence index has ________. This is ________.

Accepted Answer

A)  increased; bullish 
B)  decreased; bullish 
C)  increased; bearish 
D)  decreased; bearish 
A)  increased; bullish 
B)  decreased; bullish 
C)  increased; bearish 
D)  decreased; bearish

Question 7

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 time 
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 time

Question 8

Models of financial markets that emphasize psychological factors affecting investor behavior are called ________.

Accepted Answer

A)  data mining 
B)  fundamental analysis 
C)  charting 
D)  behavioral finance 
A)  data mining 
B)  fundamental analysis 
C)  charting 
D)  behavioral finance

Question 9

The breadth on day 3 is ________.

Accepted Answer

A)  -70 
B)  10 
C)  90 
D)  170 
A)  -70 
B)  10 
C)  90 
D)  170

A moving average of stock prices ________.

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

Identify the resistance-level stock price.

The moving average generates sell signals ________.

If the utility you derive from your next dollar of wealth increases by less than a loss of a dollar reduces it, you are exhibiting ________.

From day 1 to day 4, the confidence index has . This is .

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

Models of financial markets that emphasize psychological factors affecting investor behavior are called ________.

The breadth on day 3 is ________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Evaluating Investment Performance

International Diversification

Hedge Funds

Taxes, Inflation, and Investment Strategy

Investors and the Investment Process

Filters

Exam 9: Behavioral Finance and Technical Analysis

A moving average of stock prices ________.

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

Identify the resistance-level stock price.

The moving average generates sell signals ________.

If the utility you derive from your next dollar of wealth increases by less than a loss of a dollar reduces it, you are exhibiting ________.

From day 1 to day 4, the confidence index has ________. This is ________.

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

Models of financial markets that emphasize psychological factors affecting investor behavior are called ________.

The breadth on day 3 is ________.

Investments: Background and Issues

Asset Classes and Financial Instruments

Securities Markets

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Evaluating Investment Performance

International Diversification

Hedge Funds

Taxes, Inflation, and Investment Strategy

Investors and the Investment Process

Filters

From day 1 to day 4, the confidence index has . This is .