QUIZ

Question 1. When viewing the terms "special returns" or "abnormal returns," we know this can refer to _____.
the Efficient Market Hypothesis
gains in excess of the market risk-adjusted average
convertibles and warrants, etc.
More than one of the above

Question 2. Legal methods for attempting to profit through mergers and acquisitions include all of the following, except identifying _____.
an insider close to the information
candidates through financial or operating characteristics
securities which are undergoing unusual volume or pricing patterns
industries where companies are being absorbed

Question 3. An acquisition may be canceled because of any of the following except _____.
antitrust action
an unusually high premium on stock price
a lawsuit brought by stockholders
disapproval of the target company's management

Question 4. New stock issues are considered a special investment situation, because _____.
they exhibit a very good long-term investment potential
the spread is greater than that in the secondary market
there is some evidence that new issues are underpriced
More than one of the above

Question 5. Research on the strong form shows that _____ are able to achieve superior returns.
members of the SEC
corporate insiders and public officials
market specialists and corporate insiders
the majority of professional mutual fund managers

Question 6. According to the Dow Theory, daily fluctuations and secondary movements in the market are used to help identify _____.
a key indicator
a primary trend
shifts in demand and supply
More than one of the above

Question 7. All of the following are smart money rules except _____.
investment advisory recommendations
short sales by specialists
Barron's Confidence Index
None of the above

Question 8. A low Barron's Confidence Index means that _____.
investors prefer stocks to bonds
the yield on bonds is greater than that on stock
low-quality bonds have returns much higher than high-quality bonds
low-quality bonds have returns slightly higher than high-quality bonds

Question 9. The problem in reading charts has always been _____.
with the errors that are frequently made in the graphing process
understanding the past market movements
in analyzing the patterns in such a fashion that they truly predict stock market movements before they unfold
None of the above

Question 10. Smart money rules or approaches to the market include _____.
short sales by specialists
the put-call ratio
investment advisory recommendations
the odd-lot theory