CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

A basic assumption of technical analysis in contrast to fundamental analysis is that ______
A. financial statements provide information crucial in valuing a stock.
B. aggregate supply of and demand for goods and services are key determinants of stock value.
C. security prices move in patterns which repeat over long periods.
Explanation: Technical analysis assumes that patterns are repeatable and prices can be projected.

User Contributed Comments 7

User Comment
murli A is a major difference between Fundamental and technical, it is NOT an assumption of Technical.
Spain81 While A is true, you have to pick the best answer possible and the last choice stands out so much more than A does.
meiko technical analysis keyword: trends. and trends are synonymous to patterns. see this question is really very basic.
mtcfa While A is a critical difference between the two methods, it is in incorrect because it is NOT an assumption of technical analysis. The question is looking for an assumption of technical analysis.
andy4cfa "aggregate supply of and demand for" is also wrong because the technical analysis's assumption is that: the supply and demand *solely* determines the market value instead of just a *key* determinant
NinaB The question is really; what is an assumption of T-analysis and NOT F-analysis. "aggregate supply of and demand for" is ackonwledged by both. The correct answer is assumption for T-analysis only.
Shaan23 thanks andy...

I was racking my brain due to that....
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