There Are Three Techniques Available to Help an Investor Make

question 46

Multiple Choice

There are three techniques available to help an investor make a market decision.Which of the following is not such an analysis technique?

• A) Macro techniques that are based on the strong relationship between the economy and security markets.
• B) Micro techniques that estimate future market values by applying one of several basic valuation models to equity markets.
• C) Technical analysis where an investor analyzes past and recent market movements for indications of future performance.
• D) Fundamental analysis that considers the effect of market on the entire portfolio.
• E) None of the above (that is, all are techniques available to make market decisions)

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Definitions:

Directive Leadership

A leadership style where the leader tells team members what to do, provides specific guidance, and expects compliance.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment.

Follower Characteristics

The traits, behaviors, and attributes of individuals who choose to follow or support a leader, which can significantly influence the leadership process and outcomes.

Expectancy Theory

Expectancy Theory is a motivational theory that suggests individuals are more likely to perform actions if they expect their efforts will lead to desired outcomes.