Technical Analysts Basically Believe That Security Prices

question 4

Multiple Choice

Technical analysts basically believe that security prices:

• A) react rapidly to new information, and share market prices are determined by the interaction of demand and supply.
• B) react rapidly to new information, and security dealers provide liquidity.
• C) react gradually to new information, and market prices are determined by the interaction of supply and demand.
• D) react gradually to new information, and security dealers provide liquidity.

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Definitions:

Discretionary Approach

A method or strategy that allows for flexibility and personal judgment in decision-making processes.

Shock Or Surprise

An emotional or physical response to an unexpected event or piece of information.

Direct Approach

A communication style that is straightforward and to the point, without unnecessary details or digressions.

Negative Message

Communication that conveys a refusal, denial, or unfavorable information in a tactful way.