- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 56. Technical Analysis
- Subject 1. Definition and Scope
CFA Practice Question
Technical analysis has the following advantage over fundamental analysis ______.
II. no reliance on accounting statements
III. no need to process information ahead of other investors
I. easier timing
II. no reliance on accounting statements
III. no need to process information ahead of other investors
Correct Answer: I, II and III
User Contributed Comments 8
| User | Comment |
|---|---|
| danlan | III? |
| tanyak | what does easier timing exactly mean?? |
| Nightsurfer | They don't have to react immediatly to new information. Technical analysts can wait for a trend to emerge and then jump on. |
| chamad | can somone explain III! Thanks |
| sanyukta | well they believe price will adjust slowly and there is always some info coming all the time...the key wud be to indicate when the price is due to move significantly, they wait for the move to start, and then hit hmm hope i make sense |
| viannie | check out the curriculum graph where they show the trend bit ... they see when the stock prices keeps going upwards/downwards and make the decision to jump on/off respectively. |
| johntan1979 | Market timing |
| gill15 | Advantage is not relying on accounting statements. So the advantage is that they use less information. |