ECON 4500                        Name_____________

Quiz #1                        October 23, 2000

Evaluate one chart as provided with analysis on back of quiz.  You may also write on the chart.

Answer three of the following:

1.      What is technical analysis? Critically evaluate this tool as to its accuracy.  What are the probable strong and weak points?  Illustrate as appropriate.

 2.      Financial analysis provides many ways to evaluate profits.  Why?  What are some examples?  How accurate are these measures?

 3.      What is Malkiel's form foundation theory of stock prices?  Critically comment on this approach.

 4.      What are the sources of risk faced by investors?  Carefully describe each source of risk.

5.  What does Malkiel have to say about the predictability of stock prices?  How does this relate to what seems to be the basic thesis presented in his book?