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ABA CTFA Practice Test - Questions Answers, Page 67

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More investors are using technical analysis now than in earlier periods because:

A.
Investors are able to know the quantitative calculations of technical analysis
A.
Investors are able to know the quantitative calculations of technical analysis
Answers
B.
More business schools are now teaching technical analysis
B.
More business schools are now teaching technical analysis
Answers
C.
The Internet makes more data available to track stock prices
C.
The Internet makes more data available to track stock prices
Answers
D.
There is now more empirical evidence supporting technical analysis
D.
There is now more empirical evidence supporting technical analysis
Answers
Suggested answer: D

Which of the following represents an unusually risky stock?

A.
Blue chip stock
A.
Blue chip stock
Answers
B.
Growth stock
B.
Growth stock
Answers
C.
Penny stock
C.
Penny stock
Answers
D.
None of the given options
D.
None of the given options
Answers
Suggested answer: C

The industries that are least affected by recessions and economic adversity are referred as which of the following?

A.
Growth industries
A.
Growth industries
Answers
B.
Cyclical industries
B.
Cyclical industries
Answers
C.
Interest-sensitive industries
C.
Interest-sensitive industries
Answers
D.
Defensive industries
D.
Defensive industries
Answers
Suggested answer: D

Which of the following depicts a bullish trend in stock market?

A.
Stock price drop below support level
A.
Stock price drop below support level
Answers
B.
Stock price rises above support level
B.
Stock price rises above support level
Answers
C.
Stock price drop below resistant level
C.
Stock price drop below resistant level
Answers
D.
None of given options
D.
None of given options
Answers
Suggested answer: C

In bottom-up approach of fundamental analysis, investors begin their analysis with:

A.
Industry
A.
Industry
Answers
B.
Economy
B.
Economy
Answers
C.
Market
C.
Market
Answers
D.
Company
D.
Company
Answers
Suggested answer: D

In which of the following charts days do not matter?

A.
Line and pie charts
A.
Line and pie charts
Answers
B.
Bar and pie charts
B.
Bar and pie charts
Answers
C.
Bar and line charts
C.
Bar and line charts
Answers
D.
Point and figure charts
D.
Point and figure charts
Answers
Suggested answer: D

In which of the following the investors look at the historical perspective?

A.
Value investment
A.
Value investment
Answers
B.
Interactive investment
B.
Interactive investment
Answers
C.
Growth investment
C.
Growth investment
Answers
D.
Accredited investment
D.
Accredited investment
Answers
Suggested answer: A

Which one of the following is correct formula for calculating gross margin?

A.
Net Profit/Net Sales
A.
Net Profit/Net Sales
Answers
B.
Gross Profit/Net Sales
B.
Gross Profit/Net Sales
Answers
C.
Net income/Net Sales
C.
Net income/Net Sales
Answers
D.
Gross Profit/credit Sales
D.
Gross Profit/credit Sales
Answers
Suggested answer: B

The circuit breaker that is applied where stock prices in the market are dropping is known as which of the following?

A.
Starter
A.
Starter
Answers
B.
Floor
B.
Floor
Answers
C.
Ceiling
C.
Ceiling
Answers
D.
Simulator
D.
Simulator
Answers
Suggested answer: B

On Balance Volume one of technical indicator use _____ as base.

A.
Demand
A.
Demand
Answers
B.
Supply
B.
Supply
Answers
C.
Volume
C.
Volume
Answers
D.
Price
D.
Price
Answers
Suggested answer: C
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