An Important Belief Underlying the Use of Technical Analysis Techniques

question 68

Multiple Choice

An important belief underlying the use of technical analysis techniques is that:

• A) security prices react rapidly to new information.
• B) security prices react gradually to new information.
• C) there are sufficient investors in the market to provide enough liquidity to keep price changes relatively small.
• D) all investors have immediate and relatively low-cost access to information.

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Definitions:

Law of Demand

The principle that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

Package of Kale

A commercial bundle or container of the leafy green vegetable kale, typically prepared for retail sale.

On Sale

A promotional activity where items are offered to consumers at reduced prices for a limited period.

Electric Cars

Vehicles powered by electric motors rather than traditional internal combustion engines.