The Technical Approach Suggests That Future Stock Prices Are Forecasted

question 23

Multiple Choice

The technical approach suggests that future stock prices are forecasted by

• A)past stock prices
• B)financial ratios
• C)accounting statements
• D)monetary policy

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Definitions:

Risk-Free Rate

An interest rate that serves as a benchmark for the minimum return investors should expect because it carries no risk of financial loss.

Growth Rate

The rate at which a company's earnings or the economy's output increases over time.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.

Required Return

The minimum expected return an investor demands for the level of risk taken on an investment.