Question 1

Barber and Odean (2001)  report that men __________ women.

Accepted Answer

A)   earn higher returns than
B)   earn lower returns than
C)   earn about the same returns as
D)   generate lower trading costs than

Question 2

Conventional theories presume that investors ____________, and behavioral finance presumes that they ____________.

Accepted Answer

A)   are irrational; are irrational
B)   are rational; may not be rational
C)   are rational; are rational
D)   may not be rational; may not be rational
E)   may not be rational; are rational

Question 3

Barber and Odean (2001)  report that men trade __________ frequently than women and the frequent trading leads to __________ returns.

Accepted Answer

A)   less; superior
B)   less; inferior
C)   more; superior
D)   more; inferior

Question 4

Suppose on August 27, there were 1,455 stocks that advanced on the NYSE and 1,553 that declined. The volume in advancing issues was 852,581, and the volume in declining issues was 1,058,312. The trin ratio for that day was ________, and technical analysts were likely to be ________.

Accepted Answer

A)   0.87; bullish
B)   0.87; bearish
C)   1.15; bullish
D)   1.15; bearish

Question 5

Single men trade far more often than women. This is due to greater ________ among men.

Accepted Answer

A)   framing
B)   regret avoidance
C)   overconfidence
D)   conservatism

Question 6

Arbitrageurs may be unable to exploit behavioral biases due to I)  fundamental risk.
II. implementation costs.
III. model risk.
IV. conservatism.
V. regret avoidance.

Accepted Answer

A)   I and II only
B)   I, II, and III
C)   I, II, III, and V
D)   II, III, and IV
E)   IV and V

Question 7

An example of ________ is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses.

Accepted Answer

A)   framing
B)   regret avoidance
C)   overconfidence
D)   conservatism

Question 8

In regard to moving averages, it is considered to be a ____________ signal when market price breaks through the moving average from ____________.

Accepted Answer

A)   bearish; below
B)   bullish; below
C)   bullish; above
D)   None of the options are correct.

Exam 12: Behavioral Finance and Technical Analysis

Conventional theories presume that investors , and behavioral finance presumes that they .

Correct Answer
verified

Barber and Odean (2001) report that men trade frequently than women and the frequent trading leads to returns.

Correct Answer
verified

In regard to moving averages, it is considered to be a signal when market price breaks through the moving average from .

Correct Answer
verified

Suppose on August 27, there were 1,455 stocks that advanced on the NYSE and 1,553 that declined. The volume in advancing issues was 852,581, and the volume in declining issues was 1,058,312. The trin ratio for that day was , and technical analysts were likely to be .

Correct Answer
verified

An example of ________ is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses.

Correct Answer
verified

Arbitrageurs may be unable to exploit behavioral biases due to I) fundamental risk. II. implementation costs. III. model risk. IV. conservatism. V. regret avoidance.

Correct Answer
verified

Single men trade far more often than women. This is due to greater ________ among men.

Correct Answer
verified

Barber and Odean (2001) report that men __________ women.

Correct Answer
verified

Exam 12: Behavioral Finance and Technical Analysis

Conventional theories presume that investors ____________, and behavioral finance presumes that they ____________.

Correct AnswerverifiedShow Answer

Barber and Odean (2001) report that men trade __________ frequently than women and the frequent trading leads to __________ returns.

Correct AnswerverifiedShow Answer

In regard to moving averages, it is considered to be a ____________ signal when market price breaks through the moving average from ____________.

Correct AnswerverifiedShow Answer

Suppose on August 27, there were 1,455 stocks that advanced on the NYSE and 1,553 that declined. The volume in advancing issues was 852,581, and the volume in declining issues was 1,058,312. The trin ratio for that day was ________, and technical analysts were likely to be ________.

Correct AnswerverifiedShow Answer

An example of ________ is that a person may reject an investment when it is posed in terms of risk surrounding potential gains, but may accept the same investment if it is posed in terms of risk surrounding potential losses.

Correct AnswerverifiedShow Answer

Arbitrageurs may be unable to exploit behavioral biases due to I) fundamental risk. II. implementation costs. III. model risk. IV. conservatism. V. regret avoidance.

Correct AnswerverifiedShow Answer

Single men trade far more often than women. This is due to greater ________ among men.

Correct AnswerverifiedShow Answer

Barber and Odean (2001) report that men __________ women.

Correct AnswerverifiedShow Answer

Conventional theories presume that investors , and behavioral finance presumes that they .

Correct Answer
verified

Barber and Odean (2001) report that men trade frequently than women and the frequent trading leads to returns.

Correct Answer
verified

In regard to moving averages, it is considered to be a signal when market price breaks through the moving average from .

Correct Answer
verified

Suppose on August 27, there were 1,455 stocks that advanced on the NYSE and 1,553 that declined. The volume in advancing issues was 852,581, and the volume in declining issues was 1,058,312. The trin ratio for that day was , and technical analysts were likely to be .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified