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:

Substantial Costs

Significant expenses or outlays that a company or individual may incur.

Escalation of Commitment

The tendency to continue investing in a project or decision despite evidence of its failing, driven by emotional attachment or the desire to justify prior investments.

Persistent Failure

The ongoing inability to achieve success or meet objectives.

Long Term

Relating to or involving an extended period of time, typically emphasizing planning or thinking that takes into account the distant future rather than just immediate needs.