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On Day 1, the Stock Price of Ford Was $12

Question 2

Multiple Choice

On day 1, the stock price of Ford was $12 and the automotive stock index was 127. On day 2, the stock price of Ford was $15 and the automotive stock index was 139. 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.


A) outperforming; buying
B) outperforming; selling
C) underperforming; buying
D) underperforming; selling

Correct Answer:

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