Which of the Following Is False Regarding Market Indicators

question 86

Multiple Choice

Which of the following is false regarding market indicators?

• A) The strength or weakness of the market can be judged by changes in volume data
• B) The advance-decline line concentrates on the degree of price changes
• C) The primary objective of the Dow theory is to forecast major changes in the trend of the stock market
• D) the odd-lot index is the ratio of odd-lot sales to odd-lot purchases
• E) technicians feel that the greater the liquidity position of mutual funds, the more bullish is the market outlook

---

Definitions:

Interpret

To explain the meaning of or make sense of.

Descriptive Methods

Methods that yield descriptions of behavior but not necessarily causal explanations.

Experimental Methods

Techniques and procedures used in science to study and manipulate variables to establish cause-and-effect relationships.

Blind Studies

Research designs in which the participants do not know whether they are receiving the experimental treatment or a placebo.