A Person Who Believes Strongly in the Use of Fundamental

question 42

Multiple Choice

A person who believes strongly in the use of fundamental analysis to choose a portfolio of stocks

• A)has a better chance of outperforming the market if stock prices follow a random walk than if they do not follow a random walk.
• B)almost always chooses to hold index funds in his or her portfolio rather than actively-managed funds.
• C)is spending his or her time wisely if the efficient markets hypothesis is correct.
• D)is interested in the likely ability of a corporation to pay dividends in the future.

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Definitions:

Stacked Column Chart

A graphical representation using vertical bars divided into categories or segments, showing cumulative effect of multiple items.

Bar Chart

A graphical display of data using bars of different heights or lengths to compare various categories.

Scatter Chart

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between them.