A Fundamental Analyst

question 91

Multiple Choice

A fundamental analyst:

• A)relies upon the same information as the technical analyst, but believes in the random walk.
• B)studies a firm's financial statements to determine pricing inefficiencies.
• C)believes that the market is strong-form efficient.
• D)performs an unnecessary function, since markets are efficient.

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Definitions:

Arousal

A state of physiological and psychological alertness and responsiveness, varying in intensity from low to high.

Resistance

The act of opposing or withstanding; in psychology, it refers to the opposition to discussing, thinking about, or processing emotionally painful memories or feelings.

General Adaptation Syndrome

A three-stage response model describing the body's short-term and long-term reactions to stress, composed of alarm, resistance, and exhaustion phases.

Physiological Exhaustion

A state of extreme physical or mental fatigue brought about by excessive strain or use.