Two Basic Assumptions of Technical Analysis Are That Security Prices

question 14

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.
• E) rapidly to information and to the actions of insiders.

---

Definitions:

Joints

Joints are the locations where two or more bones meet, allowing for movement and flexibility.

Organ of Corti

A structure located on the basilar membrane in the cochlea of the inner ear, responsible for detecting sound vibrations.

Cochlea

The inner ear; the bony tube that contains the basilar membrane and the organ of Corti.

Milligram

A unit of mass equal to one thousandth of a gram, often used to measure medication or chemical substances.