Which of the Following Methods of Picking Stocks Is Not

question 60

Multiple Choice

Which of the following methods of picking stocks is not consistent with fundamental analysis?

• A)doing research such as thoroughly reading and analyzing companies' annual reports
• B)choosing mutual funds that are managed by individuals with good reputations
• C)viewing individual stock prices as unpredictable
• D)relying upon the advice of Wall Street analysts

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Definitions:

Income Increased

A scenario where an individual's or entity's earnings rise, affecting their purchasing power and economic well-being.

Income Elasticity

A measure of how the demand for a good or service changes relative to a change in consumers' income.

Normal Good

A good for which demand increases as the income of consumers increases and decreases as the income of consumers decreases.

Inferior

A term used in economics to describe goods whose demand decreases as the income of the consumer increases, contrasted with normal goods.