Reference no: EM13754470
1. Investors always act in a completely rational manner.
True_____
False_____
2. Under the Prospect Theory which statement is true
a. Leads to consistent choices when provided with identical alternatives
b. Is not an alternative to Utility Theory
c. Investors do not use all available information when making decisions
d. Investors do not tend to focus on gains and losses of individual investments
3. Which statement is not true for behavioral analysis?
a. Overreaction
b. Herding
c. Influence of “framing” in buy/sell/hold decisions
d. Emphasis on charts and graphs of internal market data
4. What is a breakout in reference to support and resistance levels? Please choose the most correct answer
a. It is when a stock goes above its resistance levels
b. It is when a stock goes below its resistance level or above its support level
c. It is when a stock goes above its resistance level or below its support level
d. It is when a stock goes below its resistance level
5. When a put-call ratio is at .90 there is pessimism from option traders
True
False