1. You are given the following information concerning the share price and returns for Cubic Technologies Ltd Day Share Return Day Share Return Price 230 250 232 241 247 260 Price 233 221 0.104 -0.052 0.090 0.085 0.005 0.037 7 0.087 0.072 0.039 0.025 0.053 9 201 10 218 11 219 12 227 3 4 6 1.1 Determine and describe the trading behaviour of an investor who follows the Dow Theory which recommends investing in securities when the market begins to rise and selling securities when the market begins to fall. What return would this strategy make over the 12 day period above? (13 %) 1.2 Calculate the return earned by an investor who uses a Buy-and-Hold portfolio starting at the same time as the Dow Theory investor above (3 %) 1.3 Comment briefly on the performance of the Dow Theory against a Buy and-Hold strategy in this particular case as well as in general. Advise your client on the suitability of the two strategies (5 %) 1.4 Discuss the techniques of moving averages and filter rules as they are used by technical analysts. Include in your answer a discussion of technical analysis for an investor wishing to invest in emerging markets (12% %)