Which of the Following Is not Considered an Assumption of Technical

question 20

Multiple Choice

Which of the following is not considered an assumption of technical analysis?

• A) Market value is determined solely by supply and demand.
• B) Supply and demand are governed by both rational and irrational factors.
• C) Security prices tend to move in trends that persist for an appreciable length of time.
• D) Stock prices follow a random walk.
• E) Changes in trend are caused by the shifts in supply and demand relationships.

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Definitions:

Bootstrap Distribution

The distribution of a large number of bootstrap samples' statistics, used for estimating the shape of the true distribution of a statistic.

Normal

A term often used to describe data following a bell-shaped, symmetrical distribution around a central value, with predictable patterns as far as spread and outliers.

Bootstrap Distribution

A technique in statistics for estimating the distribution of a statistic by resampling with replacement from the original sample.

Normal

In statistics, this describes a distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.