An Important Assumption Underlying the Use of Technical Analysis Techniques

question 82

Multiple Choice

An important assumption underlying the use of technical analysis techniques is that ________.

• A) security prices adjust rapidly to new information
• B) security prices adjust gradually to new information
• C) security dealers will provide enough liquidity to keep price changes relatively small
• D) all investors have immediate and costless access to information

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Definitions:

Incidental Beneficiary

A third party who unintentionally benefits from a contract between two other parties, without having legal rights to enforce the contract's terms.

Contractual Rights

Legal rights acquired by individuals or entities under the terms of a contract, including the rights to receive goods, services, or payments.

Creditor Beneficiary

A third party that benefits from a contract, particularly one made between two other parties to pay a debt owed to the beneficiary.

Second-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from its execution, typically in contracts intended to benefit a third party.