Question 1

According to Charles Dow, what has been the main downfall of Wall Street investors?

Options :

A :

Independent thinking

B :

Failure to stay the course

C :

Pride of opinion

D :

Failure to abide by classic trading rules

Answer: C

Question 2

Counterattack lines are formed when:

Options :

A :

a doji breaks a moving average

B :

a dumpling top fails with an abandoned baby pattern

C :

when opposite colored candles have the same close

D :

When same-colored candles have the same close

Answer: C

Question 3

The Sharpe Ratio is defined as?

Options :

A :

(expected return plus the risk free interest rate) divided by the standard deviation of returns

B :

(expected return minus the risk free interest rate) divided by the standard deviation of returns

C :

(expected return divided by the risk free interest rate) divided by the standard deviation of returns

D :

(expected return times the risk free interest rate) divided by the standard deviation of returns

Answer: B

Question 4

Which of the following is one of the advantages of computerized trading systems?

Options :

A :

Computerized trend following systems are profitable in all types of markets

B :

Computerized systems improve the interpretation of complex trading patterns

C :

Computerized trading systems remove the human emotion element

D :

All of the above

Answer: C

Question 5

Reversals in point and figure charts:

Options :

A :

Are set by convention as all point and figure charts have the same reversals

B :

Depend on the investment time horizon of the holder

C :

Can change within the same chart

D :

Should be less than a week

Answer: B

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