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50. A possible limit on arbitrage activity that may allow behavioral biases to persist is
_______.
51. If you are not a contrarian, you consider a high put/call ratio to be a __________.
52. On day 1, the stock price of Ford was $12 and the automotive stock index was 127. On day
2, the stock price of Ford was $15 and the automotive stock index was 139. Consider the ratio of
Ford to the automotive stock index at day 1 and day 2. Ford is __________ the automotive industry,
and technical analysts who follow relative strength would advise __________ the stock.
53. At the end of July, the average yields on 10 top-rated corporate bonds and 10
intermediate-grade bonds were 7.65% and 8.42%, respectively. At the end of August, the average
yields on 10 top-rated corporate bonds and 10 intermediate-grade bonds were 6% and 6.71%,
respectively. The confidence index _________ during August, and bond technical analysts are likely
to be ________.
54. On a particular day, there were 890 stocks that advanced on the NYSE and 723 that
declined. The volume in advancing issues was 80,846,000, and the volume in declining issues was
70,397,000. The common measure of market breadth is __________.
55. On a particular day, there were 920 stocks that advanced on the NYSE and 723 that
declined. The volume in advancing issues was 80,846,000, and the volume in declining issues was
70,397,000. The trin ratio is __________, and technical analysts are likely to be __________.
56. An accumulation of cash by mutual funds may be viewed by technical traders as a
__________ indicator.
57. A point and figure chart:
I. Gives a sell signal when the stock price penetrates previous lows
II. Tracks significant upward or downward movements
III. Has no time dimension
IV. Indicates congestion areas
58. When technical analysts say a stock has good "relative strength," they mean that in the
recent past __________.
59. Technical traders view mutual fund investors as _________ market timers.
60. An important assumption underlying the use of technical analysis techniques is that
___________________.
61. If the put/call ratio increases, market contrarians may interpret this as what kind of
signal?
62. The tendency of investors to hold on to losing investments is called the ________.
63. Which one of the following best describes fundamental risk?
64.
The trin on day 2 is ___.
65.
The confidence index on day 1 is _____.
66.
The breadth on day 3 is _______.
67.
The cumulative breadth for the first 2 days is ___.
