Two Basic Assumptions of Technical Analysis Are That Security Prices

question 8

Multiple Choice

Two basic assumptions of technical analysis are that security prices adjust

• A)rapidly to new information, and market prices are determined by the interaction of supply and demand.
• B)rapidly to new information, and liquidity is provided by security dealers.
• C)gradually to new information, and market prices are determined by the interaction of supply and demand.
• D)gradually to new information, and liquidity is provided by security dealers.

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Definitions:

Chartered Banks

Financial institutions granted a charter giving them the right to operate and offer banking services to the public.

Working Capital

The discrepancy between an organization's immediate assets and its short-term obligations, showcasing the business's operational productivity and liquidity over the short term.

Net Present Value (NPV)

The gap between the present value of incoming cash and the present value of outgoing cash during a given period, used in assessing the profitability of an investment.