Technicians do NOT believe:

• A.Trends and patterns are somewhat predictable.
• B.Fundamental analysis is a key input in determining security prices.
• C.Security price movements occur after fundamental developments unfold.

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When the average loss is zero, RSI becomes:

• A.zero.
• B.50.
• C.100.

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An old college friend provides you with a stock tip. He had heard that XYZ, Inc. was the sole patent holder in a new technology that will increase gasoline mileage on any automobile by 20%. You immediately purchase the stock for all client portfolios where it is suitable.

• A.You need to disclose your friend's position in the stock to your clients.
• B.You do not have reasonable basis for this decision without further evaluation.
• C.Your actions are appropriate and do not violate the Standards.

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The significance level in hypothesis testing refers to the probability that we will:

• A.Reject the null when it is true.
• B.Accept the alternative when it is true.
• C.Fail to reject the null when it is false.

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Without violating the rules of CAPM, which of the following strategies may be undertaken in an attempt to earn a return that's greater than that of the market?

• A.Short sell securities that have a beta of less than one and purchase the market portfolio.
• B.Purchase securities that have a higher standard deviation than that of the market.
• C.Purchase securities whose correlation coefficient with that of the market is greater than one.

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