An Alternative Approach to Forecasting the Behaviour of Share Prices

question 53

Multiple Choice

An alternative approach to forecasting the behaviour of share prices is technical analysis.Which of the following statements in relation to the approach taken by technical analysts is incorrect?

• A) As a price pattern emerges, it is assumed that the historical pattern will re-emerge in full.
• B) The stock markets are, at times, dominated by mass psychology.
• C) Historical price patterns are of little use in forecasting future price movements.
• D) Analysts typically adopt either a 'technical' or a 'fundamental' approach.

---

Definitions:

French Revolution

A period of radical social and political upheaval in France from 1789 to 1799, leading to the downfall of the monarchy, rise of republicanism, and significant changes in the country's political landscape.

French Colonies

Territories around the world that were controlled by France from the 16th century until the 20th century, part of a larger French colonial empire.

Financial State

A condition or situation of an entity's (person, organization, or country) finances, including assets, liabilities, and net worth at a given time.