Question 1

From day one to day four the Confidence Index has _____.This is _____.

Accepted Answer

A)   increased; bullish
B)   decreased; bullish
C)   increased; bearish
D)   decreased; bearishE) A) and B)
F) None of the above

Question 2

If you believed in the reversal effect,you should __________.

Accepted Answer

A)   buy bonds this period if you held stocks last period
B)   buy stocks this period that performed poorly last period
C)   buy stocks this period that performed well last period
D)   do nothing if you held the stock last periodE) C) and D)
F) B) and D)

Question 3

Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.

Accepted Answer

A)   data mining
B)   fundamental analysis
C)   charting
D)   behavioral financeE) B) and C)
F) A) and D)

Question 4

The Dow Theory gives a buy signal when you can identify a primary bull trend by identifying _________.

Accepted Answer

A)   a pattern of upward moving tops and bottoms
B)   a pattern of declining oscillators
C)   declining volume on up moves and increasing volume on down moves
D)   tertiary trends that support the primary trendE) None of the above
F) A) and C)

Question 5

An investor purchases shares of an index fund.The investor could take on the same level of risk by taking out a loan and purchasing a higher risk specialty fund.The Sharpe measure on this complete portfolio is higher than her existing investment.What behavioral concept prevents the investor from taking out the loan and investing in the index fund?

Accepted Answer

A)   Framing bias
B)   Excessive volatility
C)   Loss aversion
D)   Mental accountingE) A) and B)
F) None of the above

Question 6

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 __________.

Accepted Answer

A)   loss aversion
B)   regret avoidance
C)   mental accounting
D)   framing biasE) A) and C)
F) C) and D)

Question 7

According to the Dow Theory,primary trends are _________________.

Accepted Answer

A)   points of trend reversals
B)   daily fluctuations which are of little importance
C)   short-term deviations from the underlying price trend line
D)   long-term price movements lasting from months to yearsE) B) and C)
F) C) and D)

Exam 9: Behavioral Finance and Technical Analysis

If you believed in the reversal effect,you should __________.

Correct Answer
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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 __________.

Correct Answer
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According to the Dow Theory,primary trends are _________________.

Correct Answer
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The Dow Theory gives a buy signal when you can identify a primary bull trend by identifying _________.

Correct Answer
verified

From day one to day four the Confidence Index has _.This is _.

Correct Answer
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Correct Answer
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Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.

Correct Answer
verified

Exam 9: Behavioral Finance and Technical Analysis

If you believed in the reversal effect,you should __________.

Correct AnswerverifiedShow Answer

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 __________.

Correct AnswerverifiedShow Answer

According to the Dow Theory,primary trends are _________________.

Correct AnswerverifiedShow Answer

The Dow Theory gives a buy signal when you can identify a primary bull trend by identifying _________.

Correct AnswerverifiedShow Answer

From day one to day four the Confidence Index has _____.This is _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

From day one to day four the Confidence Index has _.This is _.

Correct Answer
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Correct Answer
verified

Correct Answer
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