Which of the Following Is not an Advantage of Technical

question 23

Multiple Choice

Which of the following is not an advantage of technical analysis identified by technicians?

• A) Fundamental analysis depends heavily on financial accounting statements.
• B) The majority of investors cannot consistently process new information correctly.
• C) Fundamental analysis may not time the investment properly when trading under- or over-valued securities.
• D) The majority of investors cannot process new information quickly enough.
• E) All of the above are advantages identified by technicians.

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Definitions:

Equity Securities

The common and preferred stock of a firm.

Market Price

The price at which an asset or service is traded in the open market.

Short-term Profits

Refers to the earnings generated by a company over a short period, typically within a year.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest held by shareholders.