Bollinger Bands

question 45

Multiple Choice

Bollinger bands:

• A)graphically reflect the differences between two moving averages.
• B)graphically depict the relative strength of a security as compared to the market.
• C)are a graphical representation of an exponential moving average.
• D)depict a 2-standard-deviation bound around a moving average.
• E)are equal to the 20-day moving average plus or minus one standard deviation.

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Definitions:

Stock Options

Financial instruments granted to employees or investors, giving them the right, but not the obligation, to buy or sell a company's stock at a predetermined price within a specified period.

Financial Information

Any data related to the financial performance, position, and flows of a business, including income statements, balance sheets, and cash flow statements.

Company-Sponsored Pension Plans

Retirement savings programs established by employers to provide benefits to their employees upon retirement.

Regulation FD

Stands for Fair Disclosure, a rule passed by the Securities and Exchange Commission that aims to prevent selective disclosure by requiring publicly traded companies to disclose material information to all investors at the same time.