Questions from General Investment

Q: Differentiate among market orders, limit orders, and stop-loss

Differentiate among market orders, limit orders, and stop-loss orders. What is the rationale for using a stop-loss order rather than a limit order?

Q: If growth, income, and capital preservation are the primary objectives

If growth, income, and capital preservation are the primary objectives of mutual funds, why do we bother to categorize funds by type? Do you think such classifications are helpful in the fund selectio...

Q: Why is it important to continuously manage and control your portfolio?

Why is it important to continuously manage and control your portfolio?

Q: You find the closing prices for a stock you own. You

You find the closing prices for a stock you own. You want to use a 10-day moving average to monitor the stock. Calculate the 10-day moving average for days 11 through 20. Based on the data in the tabl...

Q: Briefly describe the P/E approach to stock valuation and note

Briefly describe the P/E approach to stock valuation and note how this approach differs from the variable-growth DVM. Describe the P/CF approach and note how it is used in the stock valuation process....

Q: Data on a stock’s closing price and its price change for the

Data on a stock’s closing price and its price change for the last 14 trading days appears below. a. Over this 14-day period what is the average gain on up days? (Note: to calculate...

Q: Listed below are data that pertain to the corporate bond market.

Listed below are data that pertain to the corporate bond market. (Note: Each “period” below covers a span of six months.) a. Compute the confidence index for each...

Q: Compute the level of on-balance volume (OBV) for

Compute the level of on-balance volume (OBV) for the following three-day period for a stock, if the beginning level of OBV is 50,000 and the stock closed yesterday at $25. Does the movement in OBV a...

Q: Below are figures representing the number of stocks making new highs and

Below are figures representing the number of stocks making new highs and new lows for each month over a six-month period: Would a technical analyst consider the trend to be bullish or bearish over t...

Q: You are given the following information for the number of stocks making

You are given the following information for the number of stocks making new highs and new lows for each day: a. Calculate the 10-day moving-average NH-NL indicator. b. If there are 120 new highs and...