Fundamental Analysis Is

question 4

Multiple Choice

Fundamental analysis is

• A)the study of the relation between risk and return of stock portfolios.
• B)the determination of the allocation of savings between stocks and bonds based on a person's degree of risk aversion.
• C)the study of a company's accounting statements and future prospects to determine its value.
• D)a method used to determine how adding stocks to a portfolio will change the risk of the portfolio.

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Definitions:

Class

In the context of data, a grouping or categorization according to shared characteristics; in education, an organized period of instruction.

Simple Events

Events that cannot be broken down any further into simpler components in the context of probability.

Probabilities

The measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Simple Events

An event in probability that consists of only one outcome or occurrence and cannot be broken down further.