CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Which of the following are underlying assumptions of technical analysis?

I. Past performance has no influence on future performance or market values.
II. Security prices adjust rapidly to stock market information.
III. Security prices move in trends, which persist for appreciable lengths of time.
IV. The market value of any good or service is determined solely by the interaction of supply and demand for the good or service.
A. I and IV only
B. II and III only
C. III and IV only

User Contributed Comments 4

User Comment
andy4cfa II is wrong because the new information enters the market over a period of time, leading to a gradual adjustment of stock prices but not a rapid change
julamo If II was right, market would be efficient and technical analysis wouldn't exist
StanleyMo assumption andy!
Shaan23 I swear in the notes it said that TA adjust instantaneously.....
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