The two main forecasting techniques based on a belief in the value of added information are fundamental analysis and Question content area bottom Part 1 A. currency analysis. B. efficient analysis. C. technical analysis. D. inefficient analysis.
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Which of the following statements is CORRECT regarding fundamental and technical analysis? A) Fundamental analysis may provide better returns under the weak form of the efficient market hypothesis. B) Technical analysis is considered to be valid only under the weak form of the efficient market hypothesis. C) An example of technical analysis would be an investor looking at debt-to-equity ratios and price-to-earnings ratios. D) Top-down analysis starts with examining individual companies, and then examining the impact of the overall economy on that particular company.
Madhur L.
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1. Technical analysis refers to the study of financial market price action in order to attempt to forecast future prices. This tool has become very popular for amateur traders, who after a few introductory videos are able to learn what they consider to be an adequate level of knowledge. However, 80% of amateur traders lose money. It thus stands to reason that learning the basics of technical analysis does not prepare you for personal investing. People are often very overconfident in their own abilities, and overconfidence as we can see can be very dangerous. Which of the following best expresses the main conclusion of the above passage? A: 80% of people have not learned enough in order to trade B: Technical analysis is not an appropriate tool for trading C: Traders should not rely on a basic understanding of technical analysis D: Overconfidence is the main danger in trading E: Overconfidence is a dangerous aspect of investing
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