Royal Melbourne Institute of Technology

BAFI 1045

Topic 6

1)Technical analysis differs from fundamental analysis in that

2. Which of the following is not considered an assumption of technical analysis?
3. For technical trading rules to generate returns that are superior to a buy-and-hold strategy, net of transaction costs, the market would have to be
4. Technical analysts feel that financial accounting statements lack information, or report it in a way that makes comparisons difficult. Which of the following does not constitute a problem?
5. The following are classified as contrary trading rules, except the
6. According to contrary opinion technicians, the ratio of mutual funds cash to total assets near troughs in the market cycle and near peaks.
7. Analysts following what the smart, sophisticated investor is doing would examine
8. Indicators that tell what smart investors are doing include

9. The confidence index published by Barron's is the ration of the average yield on 10 top grade corporate bonds to the
10. The cumulative number of shares that have been sold short by investors and not covered is called
11. The short interest ratio is the ratio between the number of shares sold short and not covered, and the
12. Technicians believe that an industry or stock that is outperforming the market will tend to

13. The ratio of the price of a stock or an industry group to the value of the market index is called the
14.           charts show time series of price while                       charts only reflect change regardless of time.
15. A type charting which normally disregards both time and volume is the
16. A price range at which technicians would expect a substantial increase in the demand for a stock is called
17. A price range at which technicians feel that a significant increase in the price of the stock will be resisted is referred to as
18. Advances and declines are associated with market

19. In examining the properties of world market currencies or the spreads between currencies, an analyst is most likely to use time series properties to determine all the following, except
20. Technicians believe, when the relative strength index is stable or                             , during a              

market, the stock should do well during

21. According to technical analysts using mutual fund cash positions to guide investment decisions
22. Technicians using the confidence index published by Barrons to make investment decision
23. When the 50-day moving average crosses the 200-day moving average from below on good volume
24. The Dow Theory describes stock precise as moving in trends analogous to the movement of water. Which of the following statements is not ture?
25. Which of the following statements is true?

26. A resistance level differs from a support level in that
27. Which of the following assumptions regarding price movements summarized by Levy(1966) are controversial?
28. Which of the following is not an advantage of technical analysis identified by technicians?
29. According to Dow Theory, a major market
30. The relative strength index for a stock is equal to the price of the stock
31. A chart used to show only significant price changes regardless of their timing is the
32. The market is considered to be overbought and subject to a negative correction when more than