For Technical Trading Rules to Generate Returns That Are Superior

question 125

Multiple Choice

For technical trading rules to generate returns that are superior to a buy-and-hold strategy, net of transaction costs, the market would have to be

• A) rising.
• B) falling.
• C) inefficient.
• D) overvalued.
• E) undervalued.

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Definitions:

Partial Performance

The situation where a party has completed some, but not all, of their contractual obligations.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual dealings.

Delegation

A contracting party’s (a delegator’s) transfer of his or her duty to perform to a third party who is not part of the original contract (a delegatee).

Parol Evidence Rule

A common law rule that states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement.