Which of the following statements is most correct?
A)Technical analysis concerns itself with determining the intrinsic value of a stock.
B)Active investing is defined as buying and selling stock within six months.
C)Fundamental analysis attempts to value a company by examining the past prices patterns of a company's stock.
D)Individuals who apply active investment strategies primarily use technical analysis, fundamental analysis, or a combination.

Question

Quizplus · Accepted Answer

The statement that is most correct is D. Active investors can use a combination of technical and fundamental analysis to make buying and selling decisions within a short time frame. Technical analysis is focused on analyzing charts and patterns to make investment decisions, while fundamental analysis examines a company's financial statements and industry conditions to determine its intrinsic value. Therefore, the best answer is D, which acknowledges that active investors can use either or both methods. A is incorrect because technical analysis doesn't determine intrinsic value. B is incorrect because active investing can refer to buying and selling stock within different time frames, not just six months. C is incorrect because fundamental analysis doesn't focus on past price patterns.

Which of the Following Statements Is Most Correct