Technical analysis is a technique based on factors that are inherent to the market and include:Number of shares sold on a specific day.Number of consecutive days of price increases of a stock.Changes in the direction of movement of a market index.All of the above
A benchmark asset, commonly considered by investors to be risk-free:Treasury Bill (T-Bill).Share of preferred stock.A EurobondA junk bond.
The astute investor is aware that:Investment risk is limited to the fortunes of the specific security purchased.Computers make investment decisions scientific and eliminate much of the risk.Actual outcome of any investment may differ from the expected outcome.When trading on-line, brokerage commissions are always negotiable.
If a mutual fund manager increases his/her cash position, it can be said:The manager is anticipating a bear market.The manager is anticipating a bull market.The manager is trying to reduce the fund’s taxable gains.The manager is aggressive.
Long-term care insurance:Is only for the very elderly.Can help protect assets from the cost of a nursing home stay.Is not necessary since Medicare always covers long-term care.Is always available regardless of your past health history.
A limit order:Is used to protect a profit if it is a limit order to buy.Is used to execute a sell at a specific price or lower if possible.Is an order to buy or sell at a specific price or better and can be good till canceled.Is an order to be executed at the best price available and is not known until after confirmation is received.
Investments in CDs:Are riskier than investments in stocks.Are inferior to investments in 8-tracks and vinyl records.Are always tax deferred.Are insured by the FDIC, but have generally underperformed stock investments over the long run.
Dividends are taxed:At the investor’s marginal income tax rate.At a maximum rate of 15%.Only when the stock is sold.Dividends are never taxed.