Which of the Following Statements Is Most Correct

question 59

Multiple Choice

Which of the following statements is most correct?

• A)Technical analysis concerns itself with determining the intrinsic value of a stock.
• B)Active investing is defined as buying and selling stock within six months.
• C)Fundamental analysis attempts to value a company by examining the past prices patterns of a company's stock.
• D)Individuals who apply active investment strategies primarily use technical analysis, fundamental analysis, or a combination.

---

Definitions:

Portfolio

An aggregation of financial assets ranging from stocks and bonds to commodities, alongside cash and equivalents like mutual funds and ETFs.

Stock A

A general term used to refer to a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.

Stock C

A generic term that could refer to a third class of stock; however, without specific context, its meaning can vary.

Arbitrage Pricing Theory

A theory that designs to predict the price of assets by considering the relationship between a financial asset's returns and the macroeconomic factors that directly affect it.