完整版投资学第7版TestBank答案12.docx
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完整版投资学第7版TestBank答案12
MultipleChoiceQuestions
1.Conventionaltheoriespresumethatinvestorsandbehavioralfinance
presumesthatthey.
A）areirrational;areirrational
B）arerational;maynotberational
C）arerational;arerational
D）maynotberational;maynotberational
E）maynotberational;arerational
Answer:
BDifficulty:
Easy
2.Thepremiseofbehavioralfinanceisthat
A）conventionalfinancialtheoryignoreshowrealpeoplemakedecisionsandthatpeoplemakeadifference.
B）conventionalfinancialtheoryconsidershowemotionalpeoplemakedecisionsbutthemarketisdrivenbyrationalutilitymaximizinginvestors.
C）conventionalfinancialtheoryshouldignorehowtheaveragepersonmakesdecisionsbecausethemarketisdrivenbyinvestorsthataremuchmoresophisticatedthantheaverageperson.
D）BandC
E）noneoftheabove
Answer:
ADifficulty:
Easy
3.Someeconomistsbelievethattheanomaliesliteratureisconsistentwithinvesto'rsand.
A）abilitytoalwaysprocessinformationcorrectlyandthereforetheyinfercorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyalwaysmakeconsistentandoptimaldecisions
B）inabilitytoalwaysprocessinformationcorrectlyandthereforetheyinferincorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyalwaysmakeconsistentandoptimaldecisions
C）abilitytoalwaysprocessinformationcorrectlyandthereforetheyinfercorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyoftenmakeinconsistentorsuboptimaldecisions
D）inabilitytoalwaysprocessinformationcorrectlyandthereforetheyinferincorrectprobabilitydistributionsaboutfutureratesofreturn;givenaprobabilitydistributionofreturns,theyoftenmakeinconsistentorsuboptimaldecisions
E）noneoftheabove
Answer:
DDifficulty:
Moderate
4.Informationprocessingerrorsconsistof
I）
forecastingerrors
II）
overconfidence
III）
conservatism
IV）
framing
A）
IandII
B）
IandIII
C）
IIIandIV
D）
IVonly
E）
I,IIandIII
Answer:
EDifficulty:
Moderate
5.Forecastingerrorsarepotentiallyimportantbecause
A）researchsuggeststhatpeopleunderweightrecentinformation.
B）researchsuggeststhatpeopleoverweightrecentinformation.
C）researchsuggeststhatpeoplecorrectlyweightrecentinformation.
D）eitherAorBdependingonwhethertheinformationwasgoodorbad.
E）noneoftheabove.
Answer:
BDifficulty:
Moderate
6.DeBondtandThalerbelievethathighP/Eresultfrominvestors
A）earningsexpectationsthataretooextreme.
B）earningsexpectationsthatarenotextremeenough.
C）stockpriceexpectationsthataretooextreme.
D）stockpriceexpectationsthatarenotextremeenough.
E）noneoftheabove.
Answer:
ADifficulty:
Moderate
7.Ifapersongivestoomuchweighttorecentinformationcomparedtopriorbeliefs,theywouldmakeerrors.
A）framing
B）selectionbias
C）overconfidence
D）conservatism
E）forecasting
Answer:
EDifficulty:
Moderate
8.Singlementradefarmoreoftenthanwomen.Thisisduetogreateramong
men.
A）framing
B）regretavoidance
C）overconfidence
D）conservatism
E）noneoftheabove
Answer:
CDifficulty:
Moderate
9.mayberesponsiblefortheprevalenceofactiveversuspassive
investmentsmanagement.
A）Forecastingerrors
B）Overconfidence
C）Mentalaccounting
D）Conservatism
E）Regretavoidance
Answer:
BDifficulty:
Moderate
10.BarberandOdean（2000）rankedportfoliosbyturnoverandreportthatthedifferenceinreturnbetweenthehighestandlowestturnoverportfoliosis7%peryear.Theyattributethisto
A）overconfidence
B）framing
C）regretavoidance
D）sampleneglect
E）alloftheabove
Answer:
ADifficulty:
Moderate
11.biasmeansthatinvestorsaretooslowinupdatingtheirbeliefsinresponseto
evidence.
A）framing
B）regretavoidance
C）overconfidence
D）conservatism
E）noneoftheabove
Answer:
DDifficulty:
Moderate
12.Psychologistshavefoundthatpeoplewhomakedecisionsthatturnoutbadlyblamethemselvesmorewhenthatdecisionwasunconventional.Thenameforthisphenomenonis
A）regretavoidance
B）framing
C）mentalaccounting
D）overconfidence
E）obnoxicity
Answer:
ADifficulty:
Moderate
Rationale:
Aninvestmentsexamplegiveninthetextisbuyingthestockofastart-upfirmthatshowssubsequentpoorperformance,versusbuyingbluechipstocksthatperformpoorly.Investorstendtohavemoreregretiftheychosethelessconventionalstart-upstock.DeBondtandThalersaythatsuchregrettheoryisconsistentwiththesizeeffectandthebook-to-marketeffect.
13.Anexampleofisthatapersonmayrejectaninvestmentwhenitisposedin
termsofrisksurroundingpotentialgainsbutmayacceptthesameinvestmentifitisposedintermsofrisksurroundingpotentiallosses.
A）framing
B）regretavoidance
C）overconfidence
D）conservatism
E）noneoftheabove
Answer:
ADifficulty:
Moderate
14.Statman（1977）arguesthatisconsistentwithsomeinvestors'irrational
preferenceforstockswithhighcashdividendsandwithatendencytoholdlosingpositionstoolong.
A）mentalaccounting
B）regretavoidance
C）overconfidence
D）conservatism
E）noneoftheabove
Answer:
ADifficulty:
Moderate
15.Anexampleofisthatitisnotaspainfultohavepurchasedablue-chipstock
thatdecreasesinvalue,asitistolosemoneyonanunknownstart-upfirm.
A）mentalaccounting
B）regretavoidance
C）overconfidence
D）conservatism
E）noneoftheabove
Answer:
BDifficulty:
Moderate
16.Arbitrageursmaybeunabletoexploitbehavioralbiasesdueto.
I）
fundamentalrisk
II）
implementationcosts
III）
modelrisk
IV）
conservatism
V）
regretavoidance
A）IandIIonly
B）I,II,andIII
C）I,II,III,andV
D）II,III,andIV
E）IVandV
Answer:
BDifficulty:
Moderate
17.aregoodexamplesofthelimitstoarbitragebecausetheyshowthatthe
lawofonepriceisviolated.
I）
SiameseTwinCompanies
II）
Unittrusts
III）
Closedendfunds
IV）
Openendfunds
V）
Equitycarveouts
A）
IandII
B）
I,II,andIII
C）
I,III,andV
D）
IVandV
E）
V
Answer:
CDifficulty:
Moderate
18.wasthegrandfatheroftechnicalanalysis.
A）HarryMarkowitz
B）WilliamSharpe
C）CharlesDow
D）BenjaminGraham
E）noneoftheabove
Answer:
CDifficulty:
Easy
Rationale:
CharlesDow,theoriginatoroftheDowTheory,wasthegrandfatheroftechnicalanalysis.BenjaminGrahammightbeconsideredthegrandfatheroffundamentalanalysis.HarryMarkowitzandWilliamSharpemightbeconsideredthegrandfathersofmodernportfoliotheory.
19.ThegoaloftheDowtheoryisto
A）identifyheadandshoulderpatterns.
B）identifybreakawaypoints.
C）identifyresistancelevels.
D）identifysupportlevels.
E）identifylong-termtrends.
Answer:
EDifficulty:
Easy
Rationale:
TheDowtheoryusestheDowJonesIndustrialAverageasanindicatoroflong-termtrendsinmarketprices.
20.Along-termmovementofprices,lastingfromseveralmonthstoyearsiscalled
A）aminortrend
B）aprimarytrend
C）anintermediatetrend
D）trendanalysis
E）BandD
Answer:
BDifficulty:
Easy
Rationale:
Minortrendsaremerelyday-to-daypricemovements;intermediatetrendsareoroffsettingmovementsinonedirectionafterlonger-termmovementsinanotherdirection;trendslastingfortheperioddescribedaboveareprimarytrends.
21.Adailyfluctuationoflittleimportanceiscalled
A）aminortrend
B）aprimarytrend
C）anintermediatetrend
D）amarkettrend
E）noneoftheabove
Answer:
ADifficulty:
Easy
22.Pricemovementsthatarecausedbyshort-termdeviationsofpricesfromtheunderlyingtrendlinearecalled
A）primarytrends.
B）secondarytrends.
C）tertiarytrends.
D）Dowtrends.
E）contrarytrends.
Answer:
BDifficulty:
Easy
Rationale:
Thesecondarytrendiscausedbythesedeviations,whichareeliminatedbycorrectionsthatbringthepricesbacktothetrendlines.
23.TheDowtheorypositsthatthethreeforcesthatsimultaneouslyaffectstockpricesare
I）
primarytrend
II）
intermediatetrend
III）
momentumtrend
IV）
minortrend
V）
contrariantrend
A）I,II,andIII
B）II,III,andIV
C）III,IVandV
D）I,II,andIV
E）I,III,andV
Answer:
DDifficulty:
Moderate
24.TheElliotWaveTheory.
A）isarecentvariationoftheDowTheory
B）suggeststhatstockpricescanbedescribedbyasetofwavepatterns
C）issimilartotheKondratieffWavetheory
D）AandB
e）A,B,andC
Answer:
EDifficulty:
Easy
Rationale:
BoththeElliotWaveTheoryandtheKondratieffWaveTheoryarerecentvariationsontheDowTheory,whichsuggeststhatstockpricesmoveinidentifiablewavepatterns.
25.Atrinratiooflessthan1.0isconsideredasa.
A）bearishsignal
B）bullishsignal
C）bearishsignalbysometechnicalanalystsandabullishsignalbyothertechnicalanalysts
D）bullishsignalbysomefundamentalists
E）CandD
Answer:
BDifficulty:
Easy
Rationale:
Atrinratiooflessthan1.0isconsideredbullishbecausethedecliningstockshaveloweraveragevolumethantheadvancingstocks,indicatingnetbuyingpressure.
26.OnOctober29,1991therewere1,031stocksthatadvaneedontheNYSEand610that
declined.Thevolumeinadvancingissueswas112,866,000andthevolumeindecliningissueswas58,188,000.Thetrinratioforthatdaywasandtechnicalanalysts
werelikelytobe.
A）0.87,bullish
B）0.87,bearish
C）1.15,bullish
D）1.15,bearish
E）noneoftheabove
Answer:
ADifficulty:
Moderate
Rationale:
（1,031/610）/（112,866,000/58,388,000）=0.87.Atrinratiolessthan1isconsideredbullishbecauseadvancingstockshaveahighervolumethandecliningstocks,indicatingabuyingpressure.
27.Inregardt
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