Question 2 Equity mutual fund managers reveal their market views through the portion of their portfolios they hold in cash. As they get more bullish, which of the following would you expect to see happen? The cash holdings of mutual funds should decrease The cash holdings of mutual funds should be unchanged. The cash holdings of mutual funds should increase Some technical trading rules try to detect shifts in demand and supply. Which of the following can be viewed as an originator to a shift down in demand (and thus of declining stock prices in the future)? An increase in the number of stocks that lance relative to stocks that decrease in price. A stock price movement that has the resistance line A stock price movement that breaches the support line An increase in trading volume companying an increase in the stock price An increase in trading volume companying a decrease in ck price Question 5 If you want to trade ahead of news announcements, which of the following variables you need to track? Trading Volume on a Stock Stock Prices Activity on Options listed on the stock Earnings Revisions and analyst recommendations All of the Above Question 7 If you are a market timer, which of the following strategies can you use to time markets? None of the above Change your asset allocation mix, shifting more of your portfolio to asset classes that you are bullish on and away from asset classes where you are bearish. Switch investment styles from value to growth or vice versa, depending upon expected economic and market performace Shift your money across sectors as a function of where you believe the overall market (economy) is in the cycle. All of the above Use market index derivatives, i.e., stock futures and options, to speculate on market directions