An investment advisor is discussing the risks of investing in crypto assets with a client. Which of the following is a typical feature of crypto assets?

• A. Their value can be highly volatile, subject to market speculation
• B. They are intangible so have no opportunity for long term gain
• C. They are prone to sudden increases in supply diluting the price
• D. The heavy regulatory burden leads to high associated costs

An investment advisor is explaining hedge funds to a client who is considering different investment options. What is a key advantage of hedge funds?

• A. They are subject to strict regulatory oversight like mutual funds
• B. They charge lower fees than other types of investment funds
• C. They have access to diverse and sophisticated investment strategies
• D. They are low-risk investments suited for conservative investors

How does the Relative Strength Index (RSI) help investors assess market conditions?

• A. It analyzes the company's quarterly earnings to forecast future stock prices
• B. It evaluates the price-to-earnings (P/E) ratio of a stock to determine its market value
• C. It indicates whether a stock is overbought or oversold, signaling possible trend reversals
• D. It measures the volatility of a stock by comparing its high and low prices

A trader expects the price of a stock to rise and wants to use a bullish strategy in options trading.
Which of the following strategies should the trader use?

• A. Buying a put option
• B. Buying a call option
• C. Selling a put option
• D. Selling a call option

In a competitive market, when the quantity demanded equals the quantity supplied, what is the result for the price of the good or service?

• A. The price will fluctuate unpredictably based on market sentiment
• B. The price will decrease due to excess demand
• C. The price will remain stable at the equilibrium point
• D. The price will increase due to excess supply