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Questions # 21:

What is the reason behind time being an important aspect of point-and-figure chart analysis?

Options:

A.

To reduce errors in a system

B.

To improve the efficiency of the system

C.

To see how long a pattern takes to form

D.

All of the above statements

Expert Solution
Questions # 22:

Which of the following is a TRUE statement about the Stochastic Oscillator?

Options:

A.

It examines the most recent closing price as a percentage of the price range over a window of time

B.

It is not as sensitive to recent price action as other indicators like Rate of Change

C.

It moves in the same direction as the Williams %R indicator

D.

It works best in a trending market, when it confirms the direction of the primary trend.

Expert Solution
Questions # 23:

Which of the following is true of Wilder's Parabolic System?

Options:

A.

It is a time/price reversal system

B.

It always in the market

C.

It only works for trending markets

D.

All of the above

Expert Solution
Questions # 24:

Which intermarket relationship may NOT hold when commodity prices decline (i.e., during periods of deflation)?

Options:

A.

The link between the dollar and commodities

B.

The link between commodities and bonds

C.

Intermarket analysis is unaffected by deflation

D.

The link between the equity and bond markets

Expert Solution
Questions # 25:

The _______________ tracks the degree of mass participation in rallies and decline.

Options:

A.

MACD line

B.

RSI

C.

Relative strength

D.

Advance/Decline line

Expert Solution
Questions # 26:

Which of the following is true of contrary opinion as a technical analysis technique?

Options:

A.

Contrary opinion can be used as the sole decision source in entering into new trading positions

B.

Contrarians trade against the consensus even when it is within a normal range

C.

Contrary opinion is more useful in deciding when to exit positions than as a timing tool

D.

Once all long positions have been set, there is diminishing influence by the bulls

Expert Solution
Questions # 27:

In a meeting with his firm's senior research analyst, George Powel, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that the key objective of the ROS is to create voluntary reporting of

research practices that promote independent and objective research to CFA Institute on an annual basis. With regard to his statements about the objectives of the ROS.

Options:

A.

he is correct.

B.

he is incorrect.

C.

He is correct about the voluntary reporting aspect.

D.

He is correct about the independent and objective research aspect.

Expert Solution
Questions # 28:

What percentage of return should be earned if you have $100 in the capital and sustain a 20% loss to return to the break-even level of $100?

Options:

A.

Return 30 percent to the $80 to return to the $100 break-even level

B.

Return 25 percent to the $70 to return to the $100 break-even level

C.

Return 30 percent to the $70 to return to the $100 break-even level

D.

Return 25 percent to the $80 to return to the $100 break-even level

Expert Solution
Questions # 29:

Which of the following is typically a period of heavier volume?

Options:

A.

First day of the week

B.

Day before a holiday

C.

Triple witching days

D.

Summer days

Expert Solution
Questions # 30:

Which of the following is a CORRECT interpretation of the shooting star pattern?

Options:

A.

It is even more bearish than the gravestone doji candle

B.

Shooting stars in charts, as in life, are omens of good fortune

C.

The color of the real body is of utmost importance to its significance

D.

It is a bearish reversal pattern

Expert Solution
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