BCHM 4360 EXAM 2 CHAPTER 9 (ACTUAL EXAM 2025) | ALL QUESTIONS AND CORRECT
ANSWERS | VERIFIED ANSWERS | GRADED A+ | NEWEST EXAM (JUST RELEASED)
Two basic assumptions of technical analysis are that security prices adjust - (ANSWER)gradually to new
information and market prices are determined by the interaction of supply and demand.
Which one of the following statements is False? - (ANSWER)If a technical trading rule is successful, more
traders use it, causing the rule to become even more successful
In regard to moving averages, it is considered to be a _____________ signal when market price breaks
through the moving average from ___________. - (ANSWER)- bullish; below
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 - (ANSWER)Inefficient.
Which one of the following statement is False?
a- The Short interest ratio is the ratio between the number of shares sold short and not covered, and the
average daily volume of trading on the exchange.
b- The cumulative number of shares that have been sold short by investors and not covered is called
short interest.
c- Empirical analysis suggests that trigger points for trading rules are relatively stable over time
d- If the 50-day moving average line crossed the 200-day moving average line from below on good
volume, this would be bullish signal. - (ANSWER)C.
Which of the following are assumptions of the technical analysis I- Supply and demand are governed by
numerous factors, both rational and irrational II- The market value is determined solely by the
interaction of supply and demand III- Disregarding minor fluctuations, the prices for individual securities
and the overall value of the market trend to move in tends, which persist for a lengthy point in time IV-
Prevailing trends change in reaction to shifts in supply and demand relationships - (ANSWER)All of the
above
A price range at which technicians feel that a significant increase in the price of the stock will be resisted
is referred to as - (ANSWER). Resistance level.
ANSWERS | VERIFIED ANSWERS | GRADED A+ | NEWEST EXAM (JUST RELEASED)
Two basic assumptions of technical analysis are that security prices adjust - (ANSWER)gradually to new
information and market prices are determined by the interaction of supply and demand.
Which one of the following statements is False? - (ANSWER)If a technical trading rule is successful, more
traders use it, causing the rule to become even more successful
In regard to moving averages, it is considered to be a _____________ signal when market price breaks
through the moving average from ___________. - (ANSWER)- bullish; below
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 - (ANSWER)Inefficient.
Which one of the following statement is False?
a- The Short interest ratio is the ratio between the number of shares sold short and not covered, and the
average daily volume of trading on the exchange.
b- The cumulative number of shares that have been sold short by investors and not covered is called
short interest.
c- Empirical analysis suggests that trigger points for trading rules are relatively stable over time
d- If the 50-day moving average line crossed the 200-day moving average line from below on good
volume, this would be bullish signal. - (ANSWER)C.
Which of the following are assumptions of the technical analysis I- Supply and demand are governed by
numerous factors, both rational and irrational II- The market value is determined solely by the
interaction of supply and demand III- Disregarding minor fluctuations, the prices for individual securities
and the overall value of the market trend to move in tends, which persist for a lengthy point in time IV-
Prevailing trends change in reaction to shifts in supply and demand relationships - (ANSWER)All of the
above
A price range at which technicians feel that a significant increase in the price of the stock will be resisted
is referred to as - (ANSWER). Resistance level.
