According to Technical Analysts, a Shift in Market Fundamentals Will

question 71

Multiple Choice

According to technical analysts, a shift in market fundamentals will ________.

• A) be reflected in stock prices immediately
• B) lead to a gradual price change that can be recognized as a trend
• C) lead to high volatility in stock market prices
• D) leave prices unchanged

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Definitions:

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.

Payback Period

Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.