McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Master of Business Administration (MBA) .
Chapters
| 51. |
Which of the following is a sentiment indicator? |
| A. | Odd-lot trading. |
| B. | Advance-decline line. |
| C. | Trendline. |
| D. | Relative strength ratio. |
| Answer» A. Odd-lot trading. | |
| 52. |
Which of the following is a breadth indicator? |
| A. | Advance-decline line. |
| B. | Put/call ratio. |
| C. | Odd-lot trading. |
| D. | Channel. |
| Answer» A. Advance-decline line. | |
| 53. |
On which of the following does a hammer sometimes appear? |
| A. | Moving average chart. |
| B. | Point-and-figure chart. |
| C. | Candlestick chart. |
| D. | Bar chart. |
| Answer» C. Candlestick chart. | |
| 54. |
The number of stocks hitting new 52-week highs is a(n): |
| A. | intermediate trend indicator. |
| B. | breadth indicator. |
| C. | sentiment indicator. |
| D. | primary trend indicator. |
| Answer» B. breadth indicator. | |
| 55. |
Which type of chart includes daily high price, low price, opening price, and closing price? |
| A. | Bar chart. |
| B. | Candlestick chart. |
| C. | Point-and-figure chart. |
| D. | Moving average chart. |
| Answer» B. Candlestick chart. | |
| 56. |
Which of the following contains the real body? |
| A. | Point-and-figure chart. |
| B. | Bar chart. |
| C. | Moving average chart. |
| D. | Candlestick chart. |
| Answer» D. Candlestick chart. | |
| 57. |
If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm, but not information that is available only to insiders. |
| A. | Semi strong |
| B. | strong |
| C. | weak |
| D. | semi strong, strong, and weak |
| Answer» A. Semi strong | |
| 58. |
When Maurice Kendall examined the patterns of stock returns in 1953 he concluded that the stock market was __________. Now, these random price movements are believed to be _________. |
| A. | inefficient; the effect of a well-functioning market |
| B. | efficient; the effect of an inefficient market |
| C. | inefficient; the effect of an inefficient market |
| D. | efficient; the effect of a well-functioning market |
| Answer» A. inefficient; the effect of a well-functioning market | |
| 59. |
A hybrid strategy is one where the investor |
| A. | uses both fundamental and technical analysis to select stocks. |
| B. | selects the stocks of companies that specialize in alternative fuels. |
| C. | selects some actively-managed mutual funds on their own and uses an investment advisor to select other actively-managed funds. |
| D. | maintains a passive core and augments the position with an actively managed portfolio. |
| Answer» D. maintains a passive core and augments the position with an actively managed portfolio. | |
| 60. |
The difference between a random walk and a submartingale is the expected price change in a random walk is ______ and the expected price change for a submartingale is ______. |
| A. | positive; zero |
| B. | positive; positive |
| C. | positive; negative |
| D. | zero; positive |
| Answer» D. zero; positive | |
| 61. |
If you believe in the _______ form of the EMH, you believe that stock prices only reflect all information that can be derived by examining market trading data such as the history of past stock prices, trading volume or short interest. |
| A. | semistrong |
| B. | strong |
| C. | weak |
| D. | semistrong, strong, and weak |
| Answer» C. weak | |
| 62. |
If you believe in the _________ form of the EMH, you believe that stock prices reflect all available information, including information that is available only to insiders. |
| A. | semistrong |
| B. | strong |
| C. | weak |
| D. | semistrong, strong, and weak |
| Answer» B. strong | |
| 63. |
__________ focus more on past price movements of a firm's stock than on the underlying determinants of future profitability. |
| A. | Credit analysts |
| B. | Fundamental analysts |
| C. | Systems analysts |
| D. | Technical analysts |
| Answer» D. Technical analysts | |
| 64. |
_________ above which it is difficult for the market to rise. |
| A. | A book value is a value |
| B. | A resistance level is a value |
| C. | A support level is a value |
| D. | A book value and a resistance level are values |
| Answer» B. A resistance level is a value | |
| 65. |
_________ below which it is difficult for the market to fall. |
| A. | An intrinsic value is a value |
| B. | A resistance level is a value |
| C. | A support level is a value |
| D. | An intrinsic value and a resistance level are values |
| Answer» C. A support level is a value | |
| 66. |
On November 22, 2009 the stock price of WalMart was $39.50 and the retailer stock index was 600.30. On November 25, 2009 the stock price of WalMart was $40.25 and the retailer stock index was 605.20. Consider the ratio of WalMart to the retailer index on November 22 and November 25. WalMart is _______ the retail industry and technical analysts who follow relative strength would advise _______ the stock. |
| A. | outperforming, buying |
| B. | outperforming, selling |
| C. | underperforming, buying |
| D. | underperforming, selling |
| Answer» B. outperforming, selling | |
| 67. |
Studies of stock price reactions to news are called |
| A. | reaction studies. |
| B. | event studies. |
| C. | drift studies. |
| D. | both reaction studies and drift studies. |
| Answer» B. event studies. | |
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