Attempting to forecast future earnings and dividends is consistent with which of the following approaches to securities analysis?
A) technical analysis
B) fundamental analysis
C) both technical analysis and fundamental analysis
D) indexing

Question

Quizplus · Accepted Answer

Forecasting future earnings and dividends is a key aspect of fundamental analysis, which involves analyzing a company's financial and economic fundamentals to determine its intrinsic value and potential for growth. Technical analysis, on the other hand, focuses on using charts and other market data to identify patterns and trends, rather than analyzing a company's financial statements. Indexing, meanwhile, involves investing in a portfolio of securities that reflects the composition of a particular market index, rather than analyzing individual securities or companies.

Attempting to Forecast Future Earnings and Dividends Is Consistent with Which