Technical Analysis Differs from Fundamental Analysis in That

question 73

Multiple Choice

Technical analysis differs from fundamental analysis in that

• A) Technical analysts contend that in-depth assessments of basic aggregate market, industry, and company performance is necessary; past price movements indicate future price movements.
• B) Technical analysts believe the market value of common stocks is determined by the interaction of supply and demand.
• C) Technical analysts argue that the market constantly weighs rational and irrational factors and that both of these affect price.
• D) Technical analysts depend far more heavily on objective, data-based approaches than the fundamentalists do.
• E) Technical analysts hold that the price of a security is determined by an expected return risk.

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Definitions:

Researchers

Individuals who conduct systematic investigations to establish facts or principles or to collect information on a subject.

Personality Disorders

A category of mental health disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Empirically

Based on, concerned with, or verifiable by observation or experience rather than theory or pure logic.

MMPI

The Minnesota Multiphasic Personality Inventory, a standardized psychometric test used to identify personality and psychological disorders.