Technical Analysis Differs from Fundamental Analysis in That

question 30

Multiple Choice

Technical analysis differs from fundamental analysis in that

• A) technical analysts contend that in-depth assessments of basic aggregate market, industry, and company performance is necessary; past price movements indicate future price movements.
• B) technical analysts believe the market value of common stocks is determined by the interaction of supply and demand.
• C) technical analysts argue that the market constantly weighs rational and irrational factors and that both of these affect price.
• D) technical analysts depend far more heavily on objective, data-based approaches than the fundamentalists do.
• E) technical analysts hold that the price of a security is determined by an expected return risk.

---

Definitions:

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.

Investment Savings

Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.

Simple Interest

Interest earned only on the original principal amount, without compounding.

Daily Closing Balance

The amount of money in an account at the end of each business day, after all transactions have been accounted for.