Technical Analysis Is Based on All of the Following Assumptions

question 18

Multiple Choice

Technical analysis is based on all of the following assumptions except:

• A)that market value is determined by the interaction of demand and supply.
• B)that stocks with strong earnings gains will outperform the market.
• C)the assumption that, though there are minor fluctuations in the market, stock prices tend to move in trends that persist for long periods of time.
• D)that shifts in demand and supply can be detected sooner or later.
• E)that reversals of trends are caused by shifts in demand and supply.

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Definitions:

Programmed Learning

An educational technique involving self-teaching with the use of specially prepared instructional materials and a step-by-step sequence that allows for self-paced learning.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging the repetition of desired behaviors and discouraging those that are undesirable.

Systematic Desensitization

A therapeutic process intended to reduce a person’s fear or anxiety towards a particular object or situation by gradually increasing exposure while using relaxation techniques.

Hyperactive Children

Children who display excessively high levels of activity, often impulsive and with difficulty maintaining attention.