Wealth-Forum e-zine

Test your understanding of this topic

Q1.

Studying financial statements of the firm constitutes:

a. Technical analysis

b. Fundamental analysis

c. Both a & b

Q2.

Technical analysis is based on the premise that the fundamentals of the company are already fully reflected in the current stock prices of the firm.

a. True

b. False

Q3.

Which of the following does not usually characterize technical analysis?

a. Uses charts, patterns and trends

b. More relevant for traders

c. Indicates long run price prediction

Q4.

Technical analysis helps finds securities which are underpriced or overpriced.

a. True

b. False

Q5.

Which of the following is/are assumption/s of technical analysis?

a. Indicates Relationship between demand and supply of securities

b. Trends tend to be repetitive

c. Both a & b