Question

When valuing common stocks, _____ relies on financial characteristics of a company, whereas _____ relies on...

When valuing common stocks, _____ relies on financial characteristics of a company, whereas _____ relies on stock price trends to determine stock values.

A. interest rate sensitivity; credit analysis
B. fundamental analysis; technical analysis
C. credit analysis; interest rate sensitivity
D. technical analysis; fundamental analysis
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Answer #1

When valuing common stocks, fundamental analysis relies on financial characteristics of a company, whereas technical analysis relies on stock price trends to determine stock values.

correct answer : B :  fundamental analysis; technical analysis

explanation : The fundamental analysis studies the all statements of company, so it studies all financial aspects of the company.

on the other hand, technical analysis has nothing to do with company reports. technical analysis predicts the stock prices based on trend.

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