The advance/decline line is being used to time both the purchase and the sale of securities.
Answer: TRUE
The advance/decline line is be used to time both the purchase and the sale of securities.
Answer: TRUE
Answer: TRUE
Charts are useful as a means of spotting developing trends.
Charts are used as a means of spotting developing trends.
Answer: TRUE
Charts are only used to confirm past trends.
Charts are only used to confirm past trends.
Answer: FALSE
The purpose of moving averages is to reduce the effect of random, short-term market fluctuations.
The purpose of moving averages is to reduce the effect of random, short-term market fluctuations.
Answer: TRUE
The simple moving average is a weighted average.
The simple moving average is a weighted average.
Answer: FALSE
The relative strength index compares a security's price relative to itself over a period of time.
The relative strength index compares a security's price relative to itself over a period of time.
Answer: TRUE
Even if the semi-strong form of the efficient market hypothesis is true, trading on illegal insider information may lead to abnormal profits.
Even if the semi-strong form of the efficient market hypothesis is true, trading on illegal insider information may lead to abnormal profits.
Answer: TRUE
Advocates of the weak-form efficient market hypothesis claim that past price movements are the best predictors of future price movements.
Advocates of the weak-form efficient market hypothesis claim that past price movements are the best predictors of future price movements.
Answer: FALSE
If stock prices move randomly, charting and technical analysis are useful investment tools.
If stock prices move randomly, charting and technical analysis are useful investment tools.
Answer: FALSE
For most companies, the stock price follows the same seasonal pattern as revenues and earnings.
For most companies, the stock price follows the same seasonal pattern as revenues and earnings.
Answer: FALSE
Some behavioral characteristics cause investors to realize lower investment returns.
Some behavioral characteristics cause investors to realize lower investment returns.
Answer: TRUE
There is strong evidence that investors who trade frequently outperform the market.
There is strong evidence that investors who trade frequently outperform the market.
Answer: FALSE
Self-attribution bias causes investors to attribute their successes to skill and failures to chance.
Self-attribution bias causes investors to attribute their successes to skill and failures to chance.
Answer: TRUE
Most investors are slow to accept evidence that contradicts their strongly held beliefs.
Most investors are slow to accept evidence that contradicts their strongly held beliefs.
Answer: TRUE
Most investors quickly sell their losers and hold on to their winners.
Most investors quickly sell their losers and hold on to their winners.
Answer: FALSE
Analysts tend to issue similar recommendations on individual securities.
Analysts tend to issue similar recommendations on individual securities.
Answer: TRUE
Individuals tend to invest in mutual funds that have recently been performing well.
Individuals tend to invest in mutual funds that have recently been performing well.
Answer: TRUE
Fund managers tend to have too little confidence in their abilities leading them to be excessively cautious.
Fund managers tend to have too little confidence in their abilities leading them to be excessively cautious.
Answer: FALSE
Behavioral finance suggests that investors react to new information in an efficient manner such that security prices accurately reflect the new information.
Behavioral finance suggests that investors react to new information in an efficient manner such that security prices accurately reflect the new information.
Answer: FALSE
Stocks of small companies have a historical tendency to do especially well in the month of January.
Stocks of small companies have a historical tendency to do especially well in the month of January.
Answer: TRUE
Evidence suggests that growth stocks tend to outperform value stocks.
Evidence suggests that growth stocks tend to outperform value stocks.
Answer: FALSE
The efficient market hypothesis has some trouble explaining the existence of market anomalies.
The efficient market hypothesis has some trouble explaining the existence of market anomalies.
Answer: TRUE
Recent academic studies in behavioral finance confirm that markets are even more efficient than previously believed.
Recent academic studies in behavioral finance confirm that markets are even more efficient than previously believed.
Answer: FALSE
An oversold market is generally considered to be overvalued.
An oversold market is generally considered to be overvalued.
Answer: FALSE
You are most likely better off doing the opposite of what most investment newsletter experts advise doing.
You are most likely better off doing the opposite of what most investment newsletter experts advise doing.
Answer: TRUE
Technical analysis is a mechanical approach to investing.
Technical analysis is a mechanical approach to investing.
Answer: TRUE
The odd-lot theory supports buying into the market when the number of odd-lot trades rises.
The odd-lot theory supports buying into the market when the number of odd-lot trades rises.
Answer: FALSE
A relatively high level of short sells is an indicator of a current bull market.
A relatively high level of short sells is an indicator of a current bull market.
Answer: FALSE
The breadth of the market refers to the spread between the number of stocks advancing and those declining in value.
The breadth of the market refers to the spread between the number of stocks advancing and those declining in value.
Answer: TRUE
Market volume is a function of market demand for and supply of stocks.
Market volume is a function of market demand for and supply of stocks.
Answer: TRUE
The stock market is considered strong when the market volume decreases in a declining market.
The stock market is considered strong when the market volume decreases in a declining market.
Answer: TRUE
For technical analysts, the forces of supply and demand have an important effect on the prices of securities.
For technical analysts, the forces of supply and demand have an important effect on the prices of securities.
Answer: TRUE
Resources for technical analysis are readily available on the Internet.
Resources for technical analysis are readily available on the Internet.
Answer: TRUE
Investors should never combine fundamental analysis and technical analysis.
Investors should never combine fundamental analysis and technical analysis.
Answer: FALSE
A principal objective of technical analysis is trying to determine when to invest.
A principal objective of technical analysis is trying to determine when to invest.
Answer: TRUE
Investors skilled in exploiting behavioral errors and market anomalies can consistently outperform the market by a wide margin.
Investors skilled in exploiting behavioral errors and market anomalies can consistently outperform the market by a wide margin.
Answer: FALSE
Historically higher returns on the stocks of small companies can be completely explained by their higher risk.
Historically higher returns on the stocks of small companies can be completely explained by their higher risk.
Answer: FALSE
If a company's revenues and earnings are highly predictable, it's stock price will also be highly predictable.
If a company's revenues and earnings are highly predictable, it's stock price will also be highly predictable.
Answer: FALSE
The efficient market hypothesis means that trades can be executed quickly, easily, and inexpensively.
The efficient market hypothesis means that trades can be executed quickly, easily, and inexpensively.
Answer: FALSE
In an efficient market, the only means of achieving high returns is to invest in high-risk securities.
In an efficient market, the only means of achieving high returns is to invest in high-risk securities.
Answer: TRUE
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