A Technical Analyst Tends to

question 22

Multiple Choice

A technical analyst tends to

• A) employ multiple market measures in his/her analysis.
• B) concentrate on a sole market measure to determine market signals.
• C) concentrate solely on buy signals in the market.
• D) forward test their theories to validate their validity.

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company's assets to create profits.

Gross Margin Percentage

A financial metric that represents the percentage of total sales revenue remaining after accounting for the cost of goods sold.

Return on Equity

A gauge of a business's earnings effectiveness, demonstrating the profitability produced per dollar invested by shareholders.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets.