- CFA Exams
- CFA Exam: Level I 2021
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 1. Definition and Scope
CFA Practice Question
Technical analysis assumes that ______
B. trends in security prices do persist.
C. trends in security prices do persist, but the persistence is not important.
A. trends in security prices do not persist.
B. trends in security prices do persist.
C. trends in security prices do persist, but the persistence is not important.
Correct Answer: B
Persistence in stock prices is critical to applying technical analysis to identify undervalued securities.
User Contributed Comments 2
| User | Comment |
|---|---|
| AUAU | i think there will at most only 1 to 2 Qs in the exam for this topics |
| johntan1979 | You're right! I sat for it in Dec 2011 and there's only 1 question on technical analysis... about doji. |