Basics Intermediate: Understanding Bull and Bear Markets

Test your knowledge

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

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
The net advance measures the difference between the number of stocks advancing in price and the number declining in price.
Choose wisely. There is only one correct answer.
True. From this comes the advance-decline line.
2.
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.
3.
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.
4.
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.
5.
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.