Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
The astute investor is aware that:Investment risk is limited to the fortunes of the specific security purchased.Computers make investment decisions scientific and eliminate much of the risk.Actual outcome of any investment may differ from the expected outcome.When trading on-line, brokerage commissions are always negotiable.
The January Effect:Is the influence on the market of the mutual funds’ performance reported in December.Is another name for the Superbowl anomaly believed to affect stock prices.Is the result of several studies regarding inexplicably higher returns during January.Supports the predictabilityof cyclical prices determined by chaos theory.(Portfolio Construction, Management and Protection by Robert A. Strong, p. 182.)
The highest denomination of U.S. currency is:The $20 billThe $100 billThe $1,000 billThe $100,000 bill
A zero coupon bond:Is sold at a discount to face value.Is worthless.Matures immediately.Always has a call feature.
A benchmark asset, commonly considered by investors to be risk-free:Treasury Bill (T-Bill).Share of preferred stock.A EurobondA junk bond.
If a mutual fund manager increases his/her cash position, it can be said:The manager is anticipating a bear market.The manager is anticipating a bull market.The manager is trying to reduce the fund’s taxable gains.The manager is aggressive.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.