Which of the following methods of picking stocks is not consistent with fundamental analysis?
A)doing research such as thoroughly reading and analyzing companies' annual reports
B)choosing mutual funds that are managed by individuals with good reputations
C)viewing individual stock prices as unpredictable
D)relying upon the advice of Wall Street analysts

Question

Quizplus · Accepted Answer

Viewing individual stock prices as unpredictable is not consistent with fundamental analysis, as fundamental analysis focuses on analyzing the financial health of a company to determine its potential for growth and profitability. This method implies a belief in the random walk theory of stock prices, which suggests that stock prices are entirely unpredictable and that any attempt to predict their movements is futile. A, B, and D, on the other hand, are consistent with fundamental analysis, as they involve assessing a company's financial statements, management team, and other relevant factors to make informed investment decisions.

Which of the Following Methods of Picking Stocks Is Not