Test your knowledge

Choose wisely. There is only one correct answer to each question.

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1.
Bull market investors seek _______ more than anything.
Choose wisely. There is only one correct answer.
Growth. Bull markets are about rising prices, and rising prices are what growth is about. Therefore, income and dividends are secondary.
2.
Why do bonds perform well during bear markets?
Choose wisely. There is only one correct answer.
Their returns stay the same. Bond returns are fixed no matter what the market. They can't rise or fall.
3.
If you believe in "buying low and selling high," at which of the following points should you sell your stock?
Choose wisely. There is only one correct answer.
When the stock begins to move downward. This signals that the bull market may be reversing, although it is never certain. This signal is not present during the other situations mentioned, because they may just be periods of slow growth.
4.
Which of the following does not contribute to bull or bear markets?
Choose wisely. There is only one correct answer.
Past bull or bear markets. Only present behavior can determine such markets.
5.
Economists and market-watchers use a practice called _______ to help them predict stock values.
Choose wisely. There is only one correct answer.
Technical analysis. This is the use of market data to analyze individual stocks and the market as a whole.