Questions from General Investment


Q: Calculate breadth for the NASDAQ using the data in Figure 12.

Calculate breadth for the NASDAQ using the data in Figure 12.5. Is the signal bullish or bearish?

See Answer

Q: Collect data on the S&P 500 for a period covering

Collect data on the S&P 500 for a period covering a few months. Try to identify primary trends. Can you tell whether the market currently is in an upward or downward trend?

See Answer

Q: Baa-rated bonds currently yield 6%, while Aa-rated

Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 5%. Suppose that due to an increase in the expected inflation rate, the yields on both bonds increase by 1%. a. What would happen to the...

See Answer

Q: Yesterday, the S&P 500 rose by .48%.

Yesterday, the S&P 500 rose by .48%. However, 1,704 issues on the NYSE declined in price while 1,367 advanced. Why might a technical analyst be concerned even though the market index rose on this day?...

See Answer

Q: Table 12B contains data on market advances and declines. Calculate cumulative

Table 12B contains data on market advances and declines. Calculate cumulative breadth and decide whether this technical signal is bullish or bearish.

See Answer

Q: In Table 12B, if the trading volume in advancing shares on

In Table 12B, if the trading volume in advancing shares on day 1 was 530 million shares, while the volume in declining issues was 440 million shares, what was the trin statistic for that day? Was the...

See Answer

Q: Briefly explain why bonds of different maturities might have different yields according

Briefly explain why bonds of different maturities might have different yields according to the expectations and liquidity preference hypotheses. Briefly describe the implications of each hypothesis wh...

See Answer

Q: Using the following data, calculate the change in the confidence index

Using the following data, calculate the change in the confidence index from last year to this year. What besides a change in confidence might explain the pattern of yield changes?

See Answer

Q: One seeming violation of the Law of One Price is the pervasive

One seeming violation of the Law of One Price is the pervasive discrepancy of closed-end fund prices from their net asset values. Would you expect to observe greater discrepancies on diversified or le...

See Answer

Q: Jill Davis tells her broker that she does not want to sell

Jill Davis tells her broker that she does not want to sell her stocks that are below the price she paid for them. She believes that if she just holds on to them a little longer they will recover, at w...

See Answer