The Bureau of Labor Statistics Does Not Try to Account

question 62

True/False

The Bureau of Labor Statistics does not try to account for quality changes in the goods and services in the basket used to compute the CPI.

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Definitions:

Weak Form

The hypothesis that past stock prices and trading volume do not affect future stock prices, suggesting that technical analysis cannot predict future movements.

Efficient-Market Hypothesis

The theory that all available information is already reflected in stock prices, suggesting that it is impossible to consistently achieve higher returns than the overall market through expert stock selection or market timing.

Technical Analysis

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume, to predict future price movements.

Support Level

A price level at which a security tends to stop declining because of an influx of buyer demand.