Tutorial answers 7s - 2206 AFE Tutorial answers 7 Week 10...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
2206 AFE Tutorial answers 7 Week 10 Answers Chapter 14 Problems 1,2 and 4 (p.574) Student exercises. They have to answer these questions based on the analysis of their stocks. Chapter 6 Question 16, p. 198 The basic premise of technical analysis is that the information dissemination process is slow-thus the adjustment of prices is not immediate but forms a pattern. This view is diametrically opposed to the concept of efficient capital markets, which contends that there is a rapid dissemination process and, therefore, prices reflect all information. Thus, there would be no value to technical analysis because technicians act after the news is made public which would negate its value in an efficient market. Chapter 15 Question 1, pp.603 The principal contention of technicians is that stock prices move in trends that persist for long periods of time. Because these trends persist they can be detected by analysing past prices. Question 2, pp.603
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/09/2009 for the course ACCOUNTING 2206AFE taught by Professor Alexandrakimov during the Three '08 term at Griffith.

Page1 / 2

Tutorial answers 7s - 2206 AFE Tutorial answers 7 Week 10...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online