The Dow Theory Describes Stock Prices as Moving in Trends

question 77

Multiple Choice

The Dow Theory describes stock prices as moving in trends analogous to the movement of water.Which of the following statements is not true?

• A) Major trends resemble tides.
• B) Intermediate trends resemble waves.
• C) Short-run movements are like ripples.
• D) Waves are the most important.
• E) None of the above (that is, all are true statements)

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Definitions:

Marginal Cost

The additional cost incurred from the production of one additional unit of a good or service.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a good or service.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Hats

Articles of clothing worn on the head, often for fashion, protection against weather conditions, or as part of a uniform.