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.

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Definitions:

Tactical Plans

Short-term actions and strategies designed to achieve specific goals within a limited time frame.

Current Needs

The immediate requirements or demands of a situation, organization, or individual that need to be addressed.

Human Resource Audits

A comprehensive examination of an organization's HR policies, procedures, and practices to ensure compliance, efficiency, and effectiveness.

Replacement Charts

Visual representations of who will replace whom when a job opening occurs.