Studies show that price A. patterns/predictive / fundamental data B. changes/stable / changes to earnings expectations C. changes/volatile / fundamentals D. data / likely to be inaccurate / estimations of quarterly report Behavioral finance theory argues that B. investors are always rational are far more 18 A. market efficiency can be refuted because we cannot find any successful traders or trading rules D. A and C C. may be difficult to exploit mispricings in security prices it E. all of the above B. status quo effect. When an investor liquidates stocks that hold paper gains before liquidates stocks that, at current prices, have lost money, it is known as: 19 A. framing effect. C. disposition effect. than D. endowment effect. Which of the following BEST describes trend lines? 20 A. Using closing prices, rather than intraday prices, increases the chance of a false breakout from a trend line. B. The more times a trend line has been touched by prices, the more significant is a breakout in the trend line. C. The flatter a trend line is, the sooner it will be broken. D. The longer a trend line is in play, the less significant is a breakout in the trend line.

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