B. 4 years
C. 8 years
D. 50 years
21. According to Elliot wave theory, the stock market behavior can be explained as _________________.
A. a series of medium-term wave cycles with no short-term trend
B. a series of long-term wave cycles with no short-term trend
C. a series of superimposed long-term and short-term wave cycles
D. sine and cosine functions
22. Conventional finance theory assumes investors are _______ and behavioral finance assumes investors are _______.
A. rational; irrational
B. irrational; rational
C. greedy; philanthropic
D. philanthropic; greedy
23. The only way for behavioral patterns to persist in prices is if ______________.
A. markets are not weak form efficient
B. there are limits to arbitrage activity
C. there are no significant trading costs
D. market psychology is inconsistent over time
24. In the context of a point and figure chart, a horizontal band of Xs and Os is a _____________.
A. buy signal
B. sell signal
C. congestion area
D. trend reversal
25. Even though indexing is growing in popularity only about _____ of equity in the mutual fund industry is held in indexed funds. This may be a sign that investors and managers __________.
A. 5%; are excessively conservative
B. 10%; overestimate their ability
C. 15%; suffer from framing biases