There Are Three Techniques Available to Help an Investor Make

question 8

Multiple Choice

There are three 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 where an investor analyses 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 the above (that is, all are techniques available to make market decisions).

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Definitions:

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental illness, emotional disturbance, and dysfunctional behavior.

Minimal Risk

A situation where the probability and magnitude of harm or discomfort anticipated in the research are not greater than those ordinarily encountered in daily life or during routine physical or psychological examinations.

Manageable Risk

A risk that can be controlled or dealt with effectively, often through mitigation strategies.

Moderate Risk

A level of risk which is considered to be acceptable but not insignificant, often requiring careful management and consideration.