Which Two of the Following Are Possible Explanations for the Situation

question 48

Multiple Choice

Which two of the following are possible explanations for the situation where a 30-day moving average intersects a 300-day moving average assuming that the 30-day average is upward sloping and the 300-day average in downward sloping?
I. the long-term trend of the market is getting ready to turn bullish
II. the long-term trend of the market is getting ready to turn bearish
III. the market will be bullish in the short-run but bearish in the long-run
IV. the market will be bearish in the short-run but bullish in the long-run

• A) I and III only
• B) I and IV only
• C) II and III only
• D) II and IV only
• E) None of the above

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Definitions:

Feature Analysis

The process of breaking down and examining the elements or structure of information, often used in cognitive psychology to understand how people recognize patterns and objects.

Processing

In psychology, refers to the operations carried out by the brain to interpret and organize sensory information into meaningful patterns.

Additive

A substance added to something in small quantities to improve or preserve it. In another context, it refers to a process or principle involving the addition of elements or quantities.

Subtractive

A process or method that involves removing elements or aspects to simplify or reduce complexity.