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.

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Definitions:

Population standard deviation

A measure of the dispersion of a set of data from its mean, calculated for the entire population.

Confidence interval

A range of values, derived from the sample statistics, that is likely to contain the value of an unknown population parameter.

Confidence interval

An estimated range of values calculated from sample data that is likely to include the true population parameter with a specified level of confidence.

Average hourly income

The average amount of money earned by an individual or group per hour worked.