Technical Analysis Is Based on All of the Following Assumptions

question 18

Multiple Choice

Technical analysis is based on all of the following assumptions except

• A)Market value is determined by the interaction of demand and supply
• B)Stocks with strong earnings gains will outperform the market
• C)The assumption that though there are minor fluctuations in the market,stock prices tend to move in trends that persist for long periods of time
• D)Shifts in demand and supply can be detected sooner or later
• E)Reversals of trends are caused by shifts in demand and supply.

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Definitions:

External Supervisory Control

Oversight conducted by external bodies or regulators to ensure an organization meets standards or regulations.

Relationship Building

The process of establishing and maintaining positive connections with others, often characterized by trust, understanding, and cooperation.

Objective Attainment

The process or strategy employed to achieve specific goals or targets set by an individual or organization.

Management By Objectives (MBO)

A strategic management model where objectives are defined by managers and employees to ensure that everyone is working towards common goals.