Q1. One of the underlying assumptions of technical analysis is that supply and demand is driven by:

A)   rational behavior during calm markets and irrational behavior during volatile markets.

B)   rational behavior only.

C)   both rational and irrational behavior.

Q2. One of the assumptions of technical analysis is:

A)   supply and demand are driven by rational and irrational behavior.

B)   all analysts have all current information.

C)   the market is efficient.

Q3. Technicians believe that the speed at which information is impounded into prices is:

A)   instantaneous.

B)   slow.

C)   very fast.

Q4. Two basic assumptions of technical analysis are that security prices:

A)   move in trends that persist for long periods of time, and liquidity is provided by securities dealers.

B)   move in trends that persist for long periods of time, and market prices are determined by the interaction of supply and demand.

C)   adjust rapidly to new information, and market prices are determined by the interaction of supply and demand.

Q5. Which of the following statements regarding the speed at which analysts believe stock prices reflect new information is most accurate?

A)   Technicians believe that prices adjust quickly to new information.

B)   Both technicians and followers of the efficient market hypothesis believe prices adjust quickly to new information.

C)   Followers of the efficient market hypothesis believe prices adjust quickly to new information.

Q6. Which of the following statements about technicians is least accurate? Technicians believe:

A)   price adjustments occur rapidly in response to new information.

B)   market value is determined by supply and demand.

C)   their job is to detect the beginnings of trends, not to predict them.

答案和详解如下：

Q1. One of the underlying assumptions of technical analysis is that supply and demand is driven by:

A)   rational behavior during calm markets and irrational behavior during volatile markets.

B)   rational behavior only.

C)   both rational and irrational behavior.

Correct answer is C)

Successful technical analysis assumes both rational and irrational behavior during all market conditions.

Q2. One of the assumptions of technical analysis is:

A)   supply and demand are driven by rational and irrational behavior.

B)   all analysts have all current information.

C)   the market is efficient.

Correct answer is A)

The market is driven by rational and irrational behavior.

Q3. Technicians believe that the speed at which information is impounded into prices is:

A)   instantaneous.

B)   slow.

C)   very fast.

Correct answer is B)

For prices to move in trends, information must be absorbed slowly, according to technicians.

Q4. Two basic assumptions of technical analysis are that security prices:

A)   move in trends that persist for long periods of time, and liquidity is provided by securities dealers.

B)   move in trends that persist for long periods of time, and market prices are determined by the interaction of supply and demand.

C)   adjust rapidly to new information, and market prices are determined by the interaction of supply and demand.

Correct answer is B)

Other assumptions of technical analysis include:     values, and thus prices, are determined by supply anddemand,supply and demand is driven by both rational and irrational behavior, and while the cause for changes in supply and demand are difficult to determine, the actual shifts in supply and demand can be observed in market price behavior.

Q5. Which of the following statements regarding the speed at which analysts believe stock prices reflect new information is most accurate?

A)   Technicians believe that prices adjust quickly to new information.

B)   Both technicians and followers of the efficient market hypothesis believe prices adjust quickly to new information.

C)   Followers of the efficient market hypothesis believe prices adjust quickly to new information.

Correct answer is C)

Technicians believe that the reaction is slow. Followers of the efficient market hypothesis believe that the reaction is quick.

Q6. Which of the following statements about technicians is least accurate? Technicians believe:

A)   price adjustments occur rapidly in response to new information.

B)   market value is determined by supply and demand.

C)   their job is to detect the beginnings of trends, not to predict them.

Correct answer is A)

Technical analysts believe that the market reacts slowly to new information, so that prices reflect news gradually.

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Q6. A dealer in a casino has rolled a five on a single die three times in a row. What is the probability of her rolling another five on the next roll, assuming it is a fair die?

A)   0.167.

B)   0.001.

C)   0.200.

Correct answer is A)

The probability of a value being rolled is 1/6 regardless of the previous value rolled.

Q7. The number of ships in the harbor is an example of what kind of variable?

A)   Discrete.

B)   Indiscrete.

C)   Continuous.

Correct answer is A)

A discrete variable is one that is represented by finite units.

Q8. Which of the following is a discrete random variable?

A)     The realized return on a corporate bond.

B)     The amount of time between two successive stock trades.

C)     The number of advancing stocks in the DJIA in a day.

Correct answer is C)

Since the DJIA consists of only 30 stocks, the answer associated with it would be a discrete random variable. Random variables measuring time, rates of return and weight will be continuous.

Q9. Which of the following statements about probability distributions is most accurate?

A)   A discrete uniform random variable has varying probabilities for each outcome that total to one.

B)   A binomial distribution counts the number of successes that occur in a fixed number of independent trials that have mutually exclusive (i.e. yes or no) outcomes.

C)   A continuous uniform distribution has a lower limit but no upper limit.

Correct answer is B)

Binomial probability distributions give the result of a single outcome and are used to study discrete random variables where you want to know the probability that an exact event will happen. A continuous uniform distribution has both an upper and a lower limit. A discrete uniform random variable has equal probabilities for each outcome.