Two basic assumptions of technical analysis are that security prices adjust
A) rapidly to new information, and market prices are determined by the interaction of supply and demand.
B) rapidly to new information, and liquidity is provided by security dealers.
C) gradually to new information, and market prices are determined by the interaction of supply and demand.
D) gradually to new information, and liquidity is provided by security dealers.
E) rapidly to information and to the actions of insiders.
Correct Answer:
Verified
Q21: In an efficient market,
A) security prices react
Q22: On November 22, the stock price of
Q23: Studies of positive earnings surprises have shown
Q24: A finding that _ would provide evidence
Q25: A market decline of 23% on a
Q27: Cumulative abnormal returns (CAR)
A) are used in
Q28: Studies of stock price reactions to news
Q29: The weather report says that a devastating
Q30: Studies of negative earnings surprises have shown
Q31: Proponents of the EMH think technical analysts
A)
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