People differ on the method by which stock should be valued. Some people are chartists, others behavioralists. The basic difference between these groups is:

Question

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Chartists believe that the past performance of a stock can predict its future performance, so they study charts of stock prices. Behavioralists, on the other hand, focus on the psychology and behavior of investors to predict stock values. Therefore, the basic difference between these groups is that chartists study charts of stock prices while behavioralists focus on investor psychology and behavior. Option A is incorrect because chartists do not rely on astrological charts. Option B is incorrect because behavioralists are not finance-based, but psychology-based. Option D is also incorrect because the two groups have different approaches.

People Differ on the Method by Which Stock Should Be