Basics Intermediate: Understanding Bull and Bear Markets

Test your knowledge

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

0%
Keep studying!
Review your answers below to learn more.
1.
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.
2.
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.
3.
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.
4.
A portfolio with a lot of stocks can be very profitable during a bull market.
Choose wisely. There is only one correct answer.
True. Stocks are able to take advantage of growth because they are made of shares, which typically grow in value during bull markets.
5.
Emotions can contribute to bull and bear markets.
Choose wisely. There is only one correct answer.
True. Aspects of investor psychology, such as emotions, can drive people to value stocks very high or very low.