Briefly describe how technical analysis is used as part of the stock valuation process. What role does it play in an investor’s decision to buy or sell a stock?
Answer to relevant QuestionsDescribe each of the following approaches to technical analysis and note how it would be used by investors. a. Confidence index b. Arms index c. Trading action d. Odd-lot trading e. Charting f. Moving averages g. On-balance ...Compute the level of on-balance volume (OBV) for the following 3-day period for a stock, if the beginning level of OBV is 50,000 and the stock closed yesterday at $25. Does the movement in OBV appear to confirm the rising ...Briefly describe each of the following types of bonds: (a) Treasury bonds, (b) Agency issues, (c) Municipal securities, and (d) Corporate bonds. Note some of the major advantages and disadvantages of each. What is the difference between conversion parity and conversion value? How would you describe the payback period on a convertible? What is the investment value of a convertible, and what does it reveal? Using the bond returns in Table 10.1 as a basis of discussion: a. Compare the returns during the 1970s to those produced in the 1980s. How do you explain the differences? b. How did the bond market do in the 1990s? How does ...
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