(13) Cyclical industries have above average sensitivity to the state of the economy therefore do well during good economic times (Ipt) A) B) fosle true (14) (15) (16) (17) The transition from the end of an expansion to the start of a contraction is called (1pt) A) peak B) trough During a deep recession, you would most want to invest in (lpt) A) steel industry B) health care industry C) housing stocks D) outo industry During a strong economy. you would most want to invest in (Ipt) A) steel industry B) health care industry c) gold stocks D) utilities A Red real body on a Candlestick means that the Opening Price is lower than the Closing Price (Lpt) A) true B) false Given a stock that tends to trade between $45 and $55, which statement is true A) $45 is the Resistance B) $45 is the Support According to the CAPM, what is the required rate of return for a stock with a bete of 2, the equit risk premium of 5%, and the risk-free rate is 3% A) 0.0% B) 3.0% 4,0% D) 10.0% E) 13.0% F) 15.0% (18) ) (19) (20) One of the principles of Prospect Theory is A) investors are always rational B) investors are always risk averse investors are risk seekers when it comes to potential gains and risk overse when it comes potential losses D) Investors are risk averse when it comes to potential gains and risk seekers when it come potential losses E) that it adheres to the Efficient Market Hypothesis