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Understanding Market Cycles: Bull and Bear Markets

1. What is a primary characteristic of a bull market?


A) Prolonged price decline

B) Asset prices rise by at least 20%

C) Increased fear and pessimism

D) No significant price changes

2. Which of the following strategies is commonly used during a bull market?


A) Short selling

B) Buy the dip

C) Risk management

D) Avoiding all investments

3. What is a sign that a bear market is ending?


A) Prices begin to show cyclical upward breakouts

B) Investor sentiment reaches a peak of optimism

C) Asset prices consistently hit new all-time highs

D) Short selling becomes less profitable

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