Question 1

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; bearishE) B) and C)
F) All of the above

Question 2

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 pricesE) A) and B)
F) B) and D)

Question 3

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 timeE) A) and B)
F) B) and C)

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 16E) All of the above
F) A) and D)

Question 5

Identify the resistance-level stock price.

Accepted Answer

A)   $40
B)   $42
C)   $44
D)   $46E) B) and D)
F) None of the above

Question 6

The breadth on day 3 is ________.

Accepted Answer

A)   -70
B)   10
C)   90
D)   170E) C) and D)
F) A) and D)

Question 7

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) A) and B)
F) None of the above

Question 8

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 biasE) B) and D)
F) B) and C)

Question 9

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 financeE) C) and D)
F) A) and B)

Exam 9: Behavioral Finance and Technical Analysis

A moving average of stock prices ________.

Correct Answer
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Identify the resistance-level stock price.

Correct Answer
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The moving average generates sell signals ________.

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

Correct Answer
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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 ________.

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

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

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

Correct Answer
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The breadth on day 3 is ________.

Correct Answer
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Exam 9: Behavioral Finance and Technical Analysis

A moving average of stock prices ________.

Correct AnswerverifiedShow Answer

Identify the resistance-level stock price.

Correct AnswerverifiedShow Answer

The moving average generates sell signals ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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 ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The breadth on day 3 is ________.

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

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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