Which of the Following Options Is NOT a Correct Reason

question 6

Multiple Choice

Which of the following options is NOT a correct reason to why discuss technical analysis?

• A) Forex dealers make extensive use of technical analysis.
• B) The forward rate may not be an unbiased predictor of the future spot rate, even in an efficient market.
• C) If a sufficiently large segment of the trading world is using technical analysis, demands and supplies to trade currencies will be buffeted by these traders even if they are irrational.
• D) The variables on the fundamental analysis as well as the macroeconomic inputs are all available at frequent intervals.

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Definitions:

Initial Cash Outlay

This refers to the amount of money initially invested or spent to start a project or investment.

Market Value

The current price at which assets, securities, or a company can be bought or sold on the open market, reflecting the perceived value by investors.

Flotation Costs

The costs incurred by a company when issuing new securities, including fees such as underwriting fees, legal fees, and registration fees.

Pre-Tax Cost

The cost of a service or product before taxes are taken into account.