Financial Investment Ch 9

7298 WordsFeb 18, 201330 Pages
Chapter 09 Behavioral Finance and Technical Analysis Multiple Choice Questions 1. Testing many different trading rules until you find one that would have worked in the past is called _______. A. data mining B. perceived patterning C. pattern searching D. behavioral analysis 2. Models of financial markets that emphasize psychological factors affecting investor behavior are called _______. A. data mining B. fundamental analysis C. charting D. behavioral finance 3. The trin statistic is a ______ indicator. A. sentiment B. flow of funds C. market structure D. fundamental 4. The put/call ratio is a ______ indicator. A. sentiment B. flow of funds C. market structure D. fundamental…show more content…
A. representativeness bias B. framing error C. conservatism D. memory bias 27. If investors overweight recent performance in forecasting the future they are exhibiting _______. A. representativeness bias B. framing error C. memory bias D. overconfidence 28. Trading activity and average returns in brokerage accounts tends to be _________. A. uncorrelated B. negatively correlated C. positively correlated D. positively correlated for women and negatively correlated for men 29. Your two best friends each tell you about a person they know who successively started a small business. That's it, you decide, if they can do it so can you. This is an example of _____________. A. mental accounting B. framing bias C. conservatism D. representativeness bias 30. Which of the following is not a sentiment indicator? A. Confidence index B. Short interest C. Odd-lot trading D. Put-call ratio 31. Which of the following is considered a sentiment indicator? A. A 200-day moving average B. Short interest C. Credit balances in brokerage accounts D. Relative strength 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 ___________. A. overconfidence B. representativeness C. forecast errors D.

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