There Are Several Techniques Available to Help an Investor Make

question 167

Multiple Choice

There are several techniques available to help an investor make a market decision. Which of the following is NOT such an analysis technique?

• A) macro techniques that are based on the strong relationship between the economy and security markets
• B) micro techniques that estimate future market values by applying one of several basic valuation models to equity markets
• C) technical analysis in which an investor analyzes past and recent market movements for indications of future performance
• D) fundamental analysis that considers the effect of market on the entire portfolio
• E) None of these are correct (that is, all are techniques available to make market decisions).

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Definitions:

Critical Issues

Significant problems or challenges that require immediate attention and resolution to prevent negative consequences.

Bottom Line

The final total of an account, balance sheet, or financial result, often referring to a company's net income or profit.

Media Richness Hierarchy

A framework that ranks communication media according to their capacity to convey information effectively, based on aspects such as immediate feedback, cues, personalization, and language variety.

Basic Communication Process

The fundamental steps involved in the exchange of information between a sender and a receiver, including encoding, medium of transmission, decoding, and feedback.