FIN 351 TEXT QUIZ CHAPTER 9

41 Smart Money Rules include
A Barron Confidence Index
B. Short sales by individuals
C. Short sales by specialists
D. Both a and c
4
42. A normal short sale ratio is between
A. That all securities are efficiently priced at any point in time. 0.-5
B. That only common stocks are efficiently priced at any point in time. 1.0-2.0
C. That only bonds are efficiently priced at any point in time. 2.0-3.0
D. Over 3.0
43. Technical analysis is based on all of the following assumptions except
A. Market value is determined by the interaction of demand and supply
B. Stocks with strong earnings gains will outperform the market
C. The assumption that though there are minor fluctuations in the market, stock prices tend to move in
trends that persist for long periods of time
D. Shifts in demand and supply can be detected sooner or later
E. Reversals of trends are caused by shifts in demand and supply.
44. Under the Dow theory, all of the following represent trends in the market except
A. Daily fluctuations
B. Secondary movement
C. Primary trends
D. Linear trends
45. Contrary opinion rules or approaches to the market include the
A. Odd-lot theory
B. Short sales positions by the public
C. Mutual fund cash position
D. A and b

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