Stock Trading, Finance And Accounting

Question: For which of the following reasons are both fundamental and technical analyses criticized?
A
Because neither can accurately predict future stock price movements

B
Because it is difficult to decide which one will help a person make more money

C
Because the numbers needed are not readily available

D
Because there are other strategies which work better

Note: Not available
1. Report
Question: Which of the following would not be an example of managing risk?
A
Investing completely in a new biotech firm

B
Diversifying an investment to ten different companies

C
Purchasing three mutual funds

D
Buying both stocks and bonds

Note: Answer not sure
1. Report
Question: Why is it important to write down trading goals?
A
So that they may become more real and not be forgotten

B
So that you may be able to throw them out if you are unable to meet them

C
So that you may be able to tell people you are a successful trader because you set goals

D
So that you may be able to ensure success

Note: Answer not sure
1. Report
Question: Which of the following is a risk of trading stocks on a foreign stock exchange as compared to trading it domestically?
A
Growth rate risk

B
Taxation risk

C
Legal risk

D
Exchange rate risk

Note: Answer not sure
1. Report
Question: What is meant by a "leading indicator"?
A
A market statistic which changes after a change in stock prices

B
A report put out by the stock market

C
Insider information

D
A market statistic which typically indicates ahead of time what the market will do

Note: Answer not sure
1. Report
Question: What is the main advantage of a stop loss order?
A
It limits all risk.

B
It protects the investor's profit without his having to monitor the stock price constantly.

C
It limits an investor's profit.

D
It creates opportunities for a straddle.

Note: Answer not sure
1. Report
Question: What would be the objective of a conservative trader's portfolio?
A
Short selling stocks

B
Long term returns over time

C
Risky trading

D
Short term returns

Note: Answer not sure
1. Report
Question: What happens to an investment if risk is mitigated properly?
A
Nothing specific happens to any one investment; risk mitigation is an overall portfolio tool.

B
The stocks you purchase are guaranteed to increase.

C
It makes for a zero sum game, with no losses or profits.

D
Risk is assigned to someone else.

Note: Answer not sure
1. Report
Question: Which of the following is a way to quantify the risk of a given security?
A
Looking at what peers think of the stock

B
Using technical analysis

C
Using fundamental analysis

D
Calculating the probability and magnitude of potential loss

Note: Answer not sure
1. Report
Question: What is a good indicator of a stock being volatile?
A
The stock price has highs of $50 and lows of $35 in the previous year.

B
The graph of the stock indicates it hits new highs and lows almost monthly.

C
The management is not qualified.

D
The stock does not declare dividends.

Note: Answer not sure
1. Report

First Prev 1 2 3 Next Last

Question: For which of the following reasons are both fundamental and technical analyses criticized?

Question: Which of the following would not be an example of managing risk?

Question: Why is it important to write down trading goals?

Question: Which of the following is a risk of trading stocks on a foreign stock exchange as compared to trading it domestically?

Question: What is meant by a "leading indicator"?

Question: What is the main advantage of a stop loss order?

Question: What would be the objective of a conservative trader's portfolio?

Question: What happens to an investment if risk is mitigated properly?

Question: Which of the following is a way to quantify the risk of a given security?

Question: What is a good indicator of a stock being volatile?