1. Define special or abnormal returns.
2. What does Table 9–5 on page 252 indicate about the relationship between a firm’s P/E ratio and its average quarterly return?
3. If you “buy straw hats in winter” or buy “when there is blood in the street,” what kind of investor are you?
4. What is technical analysis?
5. Outline the basic assumptions of technical analysis.
6. Also under the Dow Theory, what other average is used to confirm movements in the Dow Jones Industrial Average?

 

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