The Moving Average Convergence Divergence Indicator

question 24

Multiple Choice

The moving average convergence divergence indicator
Uses

• A) the difference in yields on stocks and bonds
• B) the difference in yields between high and low quality stocks
• C) the difference in a short-term moving average and a longer term moving average
• D) the difference in the number of shares sold short and the number purchased

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Definitions:

Annual Coupon

The annual interest payment made to bondholders, calculated as a percentage of the bond's face value.

Unlevered Cost

refers to the cost of an investment or project that does not include the effect of financial leverage, showing its risk and return profile without debt.

Tax Rate

The portion of one’s earnings or a company's profits that is required to be paid to the government as tax.

Market Value

The trading price at present for assets or services in the market.