Technical Analysts Believe That The

question 6

Multiple Choice

Technical analysts believe that the:

• A) future stock prices are unpredictable and therefore plot past prices.
• B) stock prices are in equilibrium and advise not to follow price patterns.
• C) future stock prices are a reflection of the past and plot prices to find reoccurring price patterns.
• D) stock prices are only predictable based on the outlook for corporations earnings.
• E) SML is the most reliable predictor.

---

Definitions:

Retained Earnings

The accumulated portion of net income that a company elects to keep, rather than distribute to shareholders as dividends.

Future Use

Refers to resources or assets that are intended to be utilized in upcoming periods, not immediately.

Payments

Monetary transactions involving the transfer of funds to fulfill a debt or obligation.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.