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Viewing page 4 out of 8 pages
Viewing questions 31-40 out of questions
Questions # 31:

Which of the following figures can not be plotted on a point and figure chart when we have to plot months and years together? Choose the best possible answer.

Options:

A.

The year is displayed at the bottom of the column and the month is not plotted

B.

The year is displayed at the bottom of the column and the number of the month is plotted instead of the X or O

C.

The month is displayed at the bottom of the column and the year is not plotted

D.

The month is displayed at the bottom of the column and the number of the year is plotted instead of the X or O

Expert Solution
Questions # 32:

__________ is used to calculate the relative volatility of the current portfolio compared to the benchmark by calculating the annualized return less the risk-free return and then divided by beta.

Options:

A.

Sharpe ratio

B.

Calmar ratio

C.

Sortino ratio

D.

Treynor ratio

Expert Solution
Questions # 33:

What is the measuring objective for double top chart pattern?

Options:

A.

The distance between the two chart tops

B.

The distance between the price level at the first top and the second top

C.

The price change of the move prior to entering the double top pattern

D.

The height of the pattern from the breakdown point

Expert Solution
Questions # 34:

Which of the following is an INCORRECT definition of cycle terminology?

Options:

A.

Amplitude - the height of the wave (cycle)

B.

Period - the time needed to finish one wave (cycle)

C.

Frequency - the number of cycles that repeat every 360°

D.

Phase - a measure of separation between the top and bottom of a wave (cycle)

Expert Solution
Questions # 35:

How can one identify the existence of a cycle?

Options:

A.

Switch time frames

B.

Remove price trend

C.

Remove volume trend

D.

Use n period extremes

Expert Solution
Questions # 36:

Based on the chart given below; identify the best course of action:

Options:

A.

Shares are losing momentum which can be confirmed by negative divergence between price and ROC; trader should be cautious and be quick to reduce position on a violation of trendline.

B.

Shares are making a series of higher highs and higher lows; ROC has turned negative which is confirming the price action; should use current pullback to add to position.

C.

ROC has turned negative which is a sell signal; should initiate a short position.

D.

Negative divergence observed between price and ROC should be ignored as prices are near life time highs.

Expert Solution
Questions # 37:

When the stocks above their 50-day MA indicator reaches an extreme-above _____ or below _____ and then moves away from that level, it shows that the intermediate-term trend has reached a likely turning point.

Options:

A.

95%, 25%

B.

95%, 5%

C.

75%, 25%

D.

75%, 15%

Expert Solution
Questions # 38:

Which of the following is a CORRECT interpretation of volume?

Options:

A.

In an uptrend, volume should increase on down days

B.

In a downtrend, volume should increase on up days

C.

Price precedes volume

D.

Volume precedes price

Expert Solution
Questions # 39:

Which of the following applies to the interpretation of point and figure charts in analyzing futures prices?

Options:

A.

Pattern analysis is more complex than for stocks

B.

Futures prices offer a greater variety of chart formations than stocks

C.

Only the most basic techniques are generally used such as a one box breakout

D.

Incorporating open interest data into a point and figure chart makes this type of chart more useful for futures

Expert Solution
Questions # 40:

A breakout:

Options:

A.

Is a minor pattern which is rarely seen and has no real significance on either the near or long term

B.

Occurs when price passes through specific levels

C.

Has no significance to a trader of investor

D.

Needs to be confirmed by other indicators

Expert Solution
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