Question

Fundamental analysis: bases predictions for future security performance on past performance. includes research on population dynamics....

Fundamental analysis:

bases predictions for future security performance on past performance.
includes research on population dynamics.
uses very little information.
refers to finding out as much information as possible on the firms or governments that issue securities.



Technical analysis:

bases predictions for future security performance on past performance.
includes research on economic growth, industrial performance, or anything that helps investors better understand risk and return.
refers to finding out as much information as possible on the firms or governments that issue securities.
was very popular historically, but has fallen out of favor.

Homework Answers

Answer #1

1. refers to finding out as much information as possible on the firms or governments that issue securities.

Explanation: Fundamental analysis attempts to evaluate the intrinsic value of a stock by gathering as much information about the firm or the government issuing stocks as possible.

2. bases predictions for future security performance on past performance.

Explanation: In technical analysis, the future performance of a stock is projected on the basis of the past performance of the stock.

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