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10. The best chance of being successful in the market is to have: a. The ability to read the market and determine the direction of the stock. b. A masters degree in nancial analysis. c. $400,000 available to invest. d. A spouse, two kids, and a dog. 11. For the technical analyst, the price chart: a. Plots the past performance of a stock. b. Allows you to analyze a stocks history. c. Helps predict the future price performance of a stock. d. Is the starting point of all analysis. e. All of the above. 12. The four key prices that are reected in a price chart are: 1) ___________ 2) ___________ 3) ___________ 4) ___________ 13. A line chart plots the closing price of each day and draws a line to connect the price points. Construct a line chart using the following information:
$65
$60
$55
$50
6/1
6/2
6/3
6/4
6/5
6/6
$45
Closing Prices: 6/1 = $56 6/2 = $58 6/3 = $64 6/4 = $59 6/5 = $64 6/6 = $56
14. Construct a bar chart with the following information: Day 1 Opening Price High Price Low Price Closing Price = $52 = $58 = $49 = $56 Day 2 Opening Price High Price Low Price Closing Price = $56 = $58 = $48 = $48 Day 3 Opening Price High Price Low Price Closing Price = $48 = $59 = $46 = $55
$65
$60
$55
$50
$45 15. Using the same information above, construct a candlestick chart. $65
$60
$55
$50
$45
Answers: 1. 2. 3. 4. C True True False - The material covered is manageable by both experienced and inexperienced investors. 5. Your class times 6. D 7. False - Yes, they are managed by a fund manager, but they do not always go up. 8. D 9. E 10. A 11. E 12. In any order: 1) Opening Price 2) High Price 3) Low Price 4) Closing Price 13. $65
$60
$55
$50
6/1
6/2
6/3
6/4
6/5
6/6
$45
14.
$65
$60
$55
$50
$60
$55
$50
$45