Technical analysis differs from fundamental analysis in that
A) technical analysts contend that in-depth assessments of basic aggregate market, industry, and company performance is necessary; past price movements indicate future price movements.
B) technical analysts believe the market value of common stocks is determined by the interaction of supply and demand.
C) technical analysts argue that the market constantly weighs rational and irrational factors and that both of these affect price.
D) technical analysts depend far more heavily on objective, data-based approaches than the fundamentalists do.
E) technical analysts hold that the price of a security is determined by an expected return risk.

Question

Quizplus · Accepted Answer

Technical analysis focuses primarily on analyzing past price movements and identifying patterns that can provide insight into future price movements. On the other hand, fundamental analysis involves assessing macroeconomic, industry, and company-specific factors to determine the intrinsic value of a security. Therefore, B is the best choice as it directly contrasts with the principles of fundamental analysis.

Technical Analysis Differs from Fundamental Analysis in That