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1 If you believe in the _________ form of the EMH, you believe that stock prices reflect all available information, including information that is available

1 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 All of the options are correct. E None of the options are correct.

2 __________ 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 E A resistance level and a support level are values

3 On 22 November, the stock price of WalMart was $69.50, and the retailer stock index was 600.30. On 25 November, the stock price of WalMart was $70.25, and the retailer stock index was 605.20. Consider the ratio of WalMart to the retailer index on 22 November and 25 November. 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 E equally performing; neither buying nor selling

4 Matthews Corporation has a beta of 1.2. The annualised market return yesterday was 13%, and the risk-free rate is currently 5%. You observe that Matthews had an annualised return yesterday of 17%. Assuming that markets are efficient, this suggests that A bad news about Matthews was announced yesterday. B good news about Matthews was announced yesterday. C no news about Matthews was announced yesterday. D interest rates rose yesterday. E interest rates fell yesterday.

5 Your professor finds a stock-trading rule that generates excess risk-adjusted returns. Instead of publishing the results, she keeps the trading rule to herself. This is most closely associated with A regret avoidance. B selection bias. C framing. D insider trading. E secrecy.

6 Suppose on 27 August there were 1 455 stocks that advanced on the NYSE and 1,553 that declined. The volume in advancing issues was 852 581, and the volume in declining issues was 1 058 312. The trin ratio for that day was ________, and technical analysts were likely to be ________. A 0.87; bullish B 0.87; bearish C 1.16; bullish D 1.16; bearish E 0.28; bearish

7 __________ measures the extent to which a security has outperformed or underperformed either the market as a whole or its particular industry. A Put/call ratio B Trin ratio C Breadth D Confidence index E Relative strength

8 __________ is a measure of the extent to which a movement in the market index is reflected in the price movements of all stocks in the market. A Put/call ratio B Trin ratio C Breadth D Confidence index E Relative strength

9 The put/call ratio is computed as __________, and higher values are considered __________ signals. A the number of outstanding put options divided by outstanding call options; bullish or bearish B the number of outstanding put options divided by outstanding call options; bullish C the number of outstanding put options divided by outstanding call options; bearish D the number of outstanding call options divided by outstanding put options; bullish E the number of outstanding call options divided by outstanding put options; bearish

10 The confidence index is computed from __________, and higher values are considered __________ signals. A bond yields; bearish B odd lot trades; bearish C odd lot trades; bullish D put/call ratios; bullish E bond yields; bullish

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