Analysis Beginner: Analyzing Investments

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1.
An upward trend that shows a reversal pattern will _______.
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Go down. An upward trend that shows a reversal pattern will go down.
2.
Which of the following does not measure stock value?
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Net profit margin. Net profit margin does not measure stock value. The other two do, in different ways.
3.
When a stock's market price is higher than its intrinsic value, a fundamental analyst _______.
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Sells it. When a stock's market price is higher than its intrinsic value, it is overvalued, and a fundamental analyst sells it.
4.
The main information source for fundamental analysis is the cash flow statement.
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False. The main information source for fundamental analysis is the balance sheet.
5.
The main goal of security analysis is to _______.
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Calculate the real value of a security. The main goal of security analysis is to calculate the real value of a security.
6.
Which of the following are used in technical analysis?
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All of the above. Technical analysis uses charts, graphs, and indicators, among other tools.
7.
A _______ chart is used to track a stock's price momentum.
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Point. A point chart is used to track a stock's price momentum.