Which of the Following Is not an Advantage of Technical

question 23

Multiple Choice

Which of the following is not an advantage of technical analysis identified by technicians?

• A) Fundamental analysis depends heavily on financial accounting statements.
• B) The majority of investors cannot consistently process new information correctly.
• C) Fundamental analysis may not time the investment properly when trading under- or over-valued securities.
• D) The majority of investors cannot process new information quickly enough.
• E) All of the above are advantages identified by technicians.

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Days

Units of time consisting of 24 hours, often used to specify timeframes or durations.

Financial Data

Numerical data detailing a company's financial status, operations, and liquidity, utilized for evaluation and decision-making purposes.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.