Technical analysis differs from fundamental analysis in that
A) Technical analysts contend that in-depth assessments of basic aggregate market, industry, and company performance is necessary; past price movements indicate future price movements.
B) Technical analysts believe the market value of common stocks is determined by the interaction of supply and demand.
C) Technical analysts argue that the market constantly weighs rational and irrational factors and that both of these affect price.
D) Technical analysts depend far more heavily on objective, data-based approaches than the fundamentalists do.
E) Technical analysts hold that the price of a security is determined by an expected return risk.

Question

Quizplus · Accepted Answer

Technical analysis focuses on analyzing price movements and trading volumes to determine future market trends and price movements. The belief is that supply and demand dynamics drive stock prices, rather than detailed assessments of company performance, as is the case with fundamental analysis. Options A, C, D, and E all contain elements that are more closely associated with fundamental analysis.

Technical Analysis Differs from Fundamental Analysis in That