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1. Testing many different trading rules until you find one that would have worked in the past
is called _______.
2. Models of financial markets that emphasize psychological factors affecting investor
behavior are called _______.
3. The trin statistic is a ______ indicator.
4. The put/call ratio is a ______ indicator.
5. Relative strength is ______ indicator.
6. Short interest is a ______ indicator.
7. Moving averages are ______ indicators.
8. Market breadth is a ______ indicator.
9. The cumulative tally of the number of advancing stocks minus declining stocks is called
the ______________.
10. A high amount of short interest is typically considered as a __________ signal, and
contrarians may consider it as a _________ signal.
11. Technical analysis focuses on _____________________.
12. Behavioralists point out that even if market prices are ____________, there may be
_______________.
13. According to market technicians, it is time to sell stock in a head-and-shoulders formation
when ___________.
14. When a stock price breaks through the moving average from below, this is considered to
be ______.
15. When the stock price falls below a moving average, a possible conclusion is that _____.
16. Following a period of falling prices, the moving average will _____.
17. A moving average of stock prices _________________.
18. When the housing bubble burst in 2007, it set off the worst financial crisis _____.
19. A support level is ___________________.
20. According to Kondratieff, the macro economy moves in a series of waves that recur at
intervals of approximately _________________.
21. According to Elliot's wave theory, stock market behavior can be explained as
_________________.
22. Conventional finance theory assumes investors are _______, and behavioral finance
assumes investors are _______.
23. The only way for behavioral patterns to persist in prices is if ______________.
24. In the context of a point and figure chart, a horizontal band of Xs and Os is a
_____________.
25. Even though indexing is growing in popularity, only about _____ of equity in the mutual
fund industry is held in indexed funds. This may be a sign that investors and managers
__________.
26. If investors are too slow to update their beliefs about a stock's future performance when
new evidence arises, they are exhibiting _______.
27. If investors overweight recent performance in forecasting the future, they are exhibiting
_______.
28. Trading activity and average returns in brokerage accounts tend to be _________.
29. Your two best friends each tell you about a person they know who successfully started a
small business. That's it, you decide; if they can do it, so can you. This is an example of
_____________.
30. Which of the following is
not
a sentiment indicator?
31. Which of the following is considered a sentiment indicator?
32. An investor holds a very conservative portfolio invested for retirement, but she takes some
extra cash she earned from her year-end bonus and buys gold futures. She appears to be
engaging in ___________.
33. Which of the following analysts focus more on past price movements of a firm's stock than
on the underlying determinants of its future profitability?
34. A trin ratio of greater than 1 is considered a __________.
35. Contrarian investors consider a high put/call ratio a __________.
36. The ratio of the average yield on 10 top-rated corporate bonds to the average yield on 10
intermediate-grade bonds is called the __________.
37. An investor needs cash to pay some hospital bills. He is willing to use his dividend income
to pay the bills, but he will not sell any stock to do so. He is engaging in ___________.
38. Bill and Shelly are friends. Bill invests in a portfolio of hot stocks that almost all his friends
are invested in. Shelly invests in a portfolio that is totally different from the portfolios of all her
friends. Both Bill's and Shelly's stocks fall 15%. According to regret theory,
_________________________________________.
39. The most common measure of __________ is the spread between the number of stocks
that advance in price and the number of stocks that decline in price.
40. Jill is offered a choice between receiving $50 with certainty or possibly receiving the
proceeds from a gamble. In the gamble a fair coin is tossed, and if it comes up heads, Jill will
receive $100; if the coin comes up tails, she will receive nothing. Jill chooses the $50 instead of
the gamble. Jill's behavior indicates __________________.
41. When the market breaks through the moving average line from below, a technical analyst
would probably suggest that it is a good time to ___________.
42. If you believed in the reversal effect, you should __________.
43. According to technical analysts, a shift in market fundamentals will __________.
44. According to market technicians, a trin statistic of less than 1 is considered a __________.
45. It is difficult to test the Kondratieff wave theory because _________.
46. A _________ is a value above which it is difficult for the market to rise.
47. _____________ is a tool that can help identify the direction of a stock's price.
48. If the utility you derive from your next dollar of wealth increases by less than a loss of a
dollar reduces it, you are exhibiting __________.
49. In technical analysis, __________ is a value below which the market is relatively unlikely to
fall.
