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It Is Necessary to Choose Either a Top-Down or a Bottom-Up

question 20

True/False

It is necessary to choose either a top-down or a bottom-up approach to searching for evidence; it is incorrect to use both approaches in the same search.​


Definitions:

Relative Strength

A momentum investing technique that compares the performance of a security to that of the overall market or a specific benchmark.

Market Index

A statistical measure which calculates changes in a representative group of individual securities to provide an overall view of the market or its segment’s performance over time.

Trading Volume

The total number of shares or contracts traded for a particular security or market during a specified period.

Loss Aversion

A psychological principle stating individuals prefer avoiding losses to acquiring equivalent gains.

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