1. Where might technical analysis be considered useful toinvestors?

A. It identifies changes in trends only after the fact B. Deviations from intrinsic values can persist for long periods C.It is useful for assets where there is scarce fundamental information

2.. Analyst forecasts which focus on a top-down approach to forecasting future performance are most likely paying attentionto:

A.Signals from individual companies within an industry first B. Macroeconomic factors such as gross domestic product (GDP) C. Microeconomic factors such as dividend yields on bio-technology stocks (shares)

3.. A trader who relies on a relative value model is least likely looking for situations that involve:

A. Buying cheap assets and selling expensive assets. B.Identifying the best time to switch between stocks and bonds. C. Buying expensive assets and selling cheap assets

4. What would be the most likely reason for the price return of a market-capitalization index performing better compared to anequal-weighted index comprised of the same securities?

A. Small-cap securities outperforming large-cap securities B. Large-cap securities outperforming small-cap securities. C. Underperformance of large-cap securities.

5. Why is trading volume an important consideration when undertaking technical analysis?

A. Trading volume represents private information not incorporated in prices B. Trading volume can be used as a signal to support price and market trends C. Both are correct

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Question 1 Technical analysis is considered useful to investors as it A identifies changes in trends ... View the full answer