Questions from General Investment

Q: T. J. Patrick is a young, successful industrial designer

T. J. Patrick is a young, successful industrial designer in Portland, Oregon, who enjoys the excitement of commodities speculation. T. J. has been dabbling in commodities since he was a teenager—he wa...

Q: Much has been written about the concept of an efficient market.

Much has been written about the concept of an efficient market. It’s probably safe to say that some of your classmates believe the markets are efficient and others believe they are not. Have a debate...

Q: Each year financial periodicals like the Wall Street Journal and Money Magazine

Each year financial periodicals like the Wall Street Journal and Money Magazine publish a list of the top performing mutual fund managers. And every year there are some fund managers who earn much hig...

Q: What is an odd-lot differential? How can you avoid

What is an odd-lot differential? How can you avoid odd-lot differentials? Which of the following transactions would involve an odd-lot differential? a. Buy 90 shares of stock b. Sell 200 shares of sto...

Q: Briefly define each of the following terms and describe how it can

Briefly define each of the following terms and describe how it can affect investors’ decisions. a. Loss aversion b. Representativeness c. Narrow framing d. Overconfidence e. Biased self-attribution

Q: Describe how representativeness may lead to biases in stock valuation.

Describe how representativeness may lead to biases in stock valuation.

Q: Briefly describe how technical analysis is used as part of the stock

Briefly describe how technical analysis is used as part of the stock valuation process. What role does it play in an investor’s decision to buy or sell a stock?

Q: Describe each of the following approaches to technical analysis and note how

Describe each of the following approaches to technical analysis and note how it would be used by investors. a. Confidence index b. Arms index c. Trading action d. Odd-lot trading e. Charting f. Moving...

Q: Briefly define each of the following and note the conditions that would

Briefly define each of the following and note the conditions that would suggest the market is technically strong. a. Breadth of the market b. Short interest c. Relative strength index d. Theory of con...

Q: Describe the general concept of economic analysis. Is this type of

Describe the general concept of economic analysis. Is this type of analysis necessary, and can it really help the individual investor make a decision about a stock? Explain.