- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 67. Technical Analysis
- Subject 1. Principles, Assumptions, and Links to Investment Analysis
CFA Practice Question
Two basic assumptions of technical analysis are that ______
A. security prices adjust rapidly to new information and market prices are determined by the interaction of supply and demand.
B. security prices adjust gradually to new information and liquidity is provided by securities dealers.
C. security prices adjust gradually to new information and market prices are determined by the interaction of supply and demand.
Explanation: Technical analysis assumes that prices can be projected with charts and other technical tools.
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