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PRICE: THE MAJOR AVERAGES
Answers
1. B. The S&P is weighted by capitalization.
2. C. The DJIA excludes utilities and transports and is not, therefore, a composite index.
3. interest, leads
4. D.
5. B.
6. A. The divergence warns that the technical position is suspect, but requires a confirmation from the S&P in the form of a trend-reversal signal before you can make a final conclusion that the odds favor a decline.
7. D.
8. C.
9. G. All the statements were correct, and the question asked for incorrect statements.
10. C. This is the symbol for the MSCI Europe Australasia Far East Index. The ACWI is the symbol for the MSCI World ETF, but the question asked for the rest of the world. The remaining symbols are those for individual countries.
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