SY Minor in Finance Quiz

What is a chart?

• Charts are the working tools of technical analysts.

• Charts are used to plot the price movements of a stock.

• Charts provide a complete picture of a stock’s price history.

• All of the above.

What is the significance of candlestick charts?

• They provide visual insight to current market psychology.

• They involve complex calculations.

• They are only useful for daily trading.

• They do not show the relationship between opening and closing prices.

What does it mean when a candlestick is hollow?

• The stock closes lower than its opening price.

• The stock closes higher than its opening price.

• The stock has no price movement.

• The stock is experiencing high volatility.

According to Dow Theory, ________ trend is the main trend and a trader should trade in direction of this trend.

• Secondary

• Minor

• Primary

• Major

What is a Bullish Engulfing pattern?

• A pattern that consists of a large black body followed by a small white body.

• A pattern that consists of a large white body that engulfs a small black body.

• A pattern that indicates a continuation of the downtrend.

• A pattern that has no significance.

Current yield is the rate of return which the investor earns if the holding period is considered to be a year.

• True

• False

If the intrinsic value of a bond is greater than the market/actual price of the bond, the decision should be to ________ the bond.

• Buy

• Sell

• Indifferent

• None of the above

The intrinsic value of a bond is the present value of all ________ expected cashflows from it.

• Present

• Indefinite

• Future

• Past

Calculate PVFA at K_d = 12%, N = 7 years. (Round off to nearest decimals)

• 4.54

• 4.45

• 4.56

• 4.65

Fundamental analysis is used to decide _______ to buy and technical analysis is used to decide _______ to buy.

• What, What

• What, When

• When, When

• When, What