What is the difference between a fundamental analyst and a technical analyst?
A) Only a fundamental analyst believes markets are inefficient.
B) A technical analyst focuses on financial statement analysis.
C) Only a technical analyst helps keep the market efficient.
D)A fundamental analyst analyzes information such as earnings and asset values.

Question

Quizplus · Accepted Answer

A fundamental analyst analyzes information such as earnings and asset values, while a technical analyst focuses on chart patterns and historical price and volume data to predict future movements of a stock or market. Option A is incorrect because both types of analysts can believe the market is inefficient. Option B is incorrect because financial statement analysis is usually associated with fundamental analysis. Option C is incorrect because both types of analysts can have an impact on the efficiency of the market.

What Is the Difference Between a Fundamental Analyst and a Technical