FIN 351 TEXT QUIZ CHAPTER 9

36. A low Barron's Confidence Index means that
A. Investors prefer stocks to bonds
B. The yield on bonds is greater than that on stock
C. Low quality bonds have returns much higher than high quality bonds
D. Low quality bonds have returns slightly higher than high quality bonds
37. As the ratio of specialist short sales to total short sales increases, technicians consider the market to be
A. Bullish
B. Bearish
C. Neutral
D. In the second leg of a bull market
38. While the Dow Jones Industrial Average may be weighted toward large firms, a(n) __________
indicator may be used to examine all stocks on an exchange.
A. Key
B. Contrary opinion
C. Breadth of the market
D. More than one of the above
39. The breadth of the market indicator
A. Attempts to measure what a broad range of securities is doing as opposed to merely examining a
market average
B. Can be used to analyze upturns in the market
C. Compares the advance-declines with the movement of a popular market average to determine if there
is divergence between the two
D. All of the above
40. The problem in reading charts has always been:
A. With the errors that are frequently made in the graphing process
B. Understanding the past market movements
C. In analyzing the patterns in such a fashion that they truly predict stock market movements before they
unfold
D. None of the above