Group 2's MCQs about Automated Trading System

Which approach i should use to control downside risk ?

• Cvar

• Mean absolute deviation

• mean variance

In Relative Strength Index (RSI) analysis, which percentage levels typically indicate overbought and oversold conditions, respectively?

• 80% and 30%

• 70% and 30%

• 60% and 40%

• 70% and 20%

I need to solve a really complex and large optimization problem in a short time, what should i chose

• Heuristic

• Exact

What is random-walk ?

• A predetermined sequence of stock price movements.

• A guided path taken by investors in financial markets.

• Stock prices move randomly and unpredictably over time.

• A systematic approach to analyzing market trends and patterns.

Calculate the 5-day Simple Moving Average (SMA) for the following closing prices:

Day 1: 55, Day 2: 60, Day 3: 58, Day 4: 62, Day 5: 59

• 58.8

• 59.2

• 59.4

• 59.8

What are the degree of an EMH ?

• Limited form, semi-strong form, ultimate form.

• Weak-form, semi-strong form, strong form

• Basic form, advanced form, expert form.

• Preliminary form, intermediate form, final form.

Which moving average method is generally considered to be better for capturing recent price movements in financial analysis?

• Smoothed Moving Average (SMMA)

• Simple Moving Average (SMA)

• Weighted Moving Average (WMA)

• Exponential Moving Average (EMA)

What is the general definition of EMH ?

• Chaotic market fluctuations.

• Fixed market prices.

• Predictable market behavior, consistent outperformance.

• Random movement, Player can’t beat the market

In financial terms, a portfolio is a collection of:

• Liabilities

• Debts

• Assets/Investments

• Expenses

Which of the following statements best describes Simple Moving Average (SMA)?

• It is more suitable for capturing short-term price trends.

• It gives more weight to recent data points.

• It is calculated by taking the average of a fixed number of past data points.

• It adjusts dynamically based on market volatility.