Exam (elaborations)
Charles P. Jones, Investment: Principles and Concepts, Twelfth Edition, John Wiley & Sons tes bank.
- Course
- Institution
Charles P. Jones, Investment: Principles and Concepts, Twelfth Edition, John Wiley & Sons.
[Show more]
Seller
Follow
TBSeller
Content preview
Ch. 16, Chapter 16: Technical AnalysisMultiple Choice Questions
1. The oldest approach to common stock selection is:
a. technical analysis
b. fundamental analysis
c. stochastic analysis
d. value analysis
Ans: a
Difficulty: Easy
Ref: Introduction
2. Technical analysis reflects the idea that stock prices:
a. move upward over time.
b. move inversely over time.
c. move in trends.
d. move randomly.
Ans: c
Difficulty: Easy
Ref: What is Technical Analysis?
3. Technical analysis is sometimes called market or ________ analysis.
a. external.
b. internal.
c. stochastic.
d. qualitative.
Ans: b
Difficulty: Moderate
Ref: What is Technical Analysis?
4. The two primary tools of a technical analyst are:
a. level of the market index and volume.
b. economic indicators and level of the market index.
c. price and earnings.
d. price and volume.
Ans: d
Difficulty: Moderate
Ref: What is Technical Analysis?
Chapter Sixteen 204
Technical Analysis
, 5. What do technical analysts believe is the best source of data to use in analyzing
stocks?:
a. Corporate earnings growth prospects.
b. Insider buying and selling of shares.
c. Current P/E ratios versus historical ratios.
d. The market itself.
Ans: d
Difficulty: Moderate
Ref: What is Technical Analysis?
6. Technical analysis differs from fundamental analysis in that technical analysis:
a. is aimed at the market while fundamental analysis is aimed at individual stocks.
b. is based on published market data and focuses on internal factors.
c. focuses on the long-term trends of production.
d. does not consider price and volume.
Ans: b
Difficulty: Easy
Ref: What is Technical Analysis?
7. All of the following are assumptions made by technical analysts except:
a. Changes in trend are caused by shifts in supply and demand relationships.
b. Stock price movements are independent of one another.
c. Security prices tend to move in trends.
d. Supply and demand of securities are determined by various factors.
Ans: b
Difficulty: Difficult
Ref: What is Technical Analysis?
8. Which of the following is not true regarding the Dow Theory?
a. It is intended to forecast the start of a primary movement.
b. It does not forecast how long a movement will last.
c. It has a very high success rate.
d. It is subject to many criticisms.
Ans: c
Difficulty: Moderate
Ref: Stock Price and Volume Techniques
9. A support level is a price range:
a. at which a significant increase in demand for a stock is expected.
Chapter Sixteen 205
Technical Analysis
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TBSeller. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78252 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now