Analysis Beginner: Analyzing Investments

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1.
To a technical analyst, every aspect of a market is revealed through _______.
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Market movement. Technical analysts study the movement of the whole market.
2.
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.
3.
A high debt-to-equity ratio is an indicator of low risk.
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False. A high debt-to-equity ratio is an indicator of high risk. It means the company is carrying a lot of debt relative to equity.
4.
Fundamental analysts determine a security's value by looking at its market price.
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False. Fundamental analysts determine a security's value by looking at the financial health of the company issuing the security.
5.
When investor expectations are high, the overall market will _______.
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Fall. When investor expectations are high, the overall market will fall.
6.
The total market value of a companys available stock shares is measured by ________.
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Capitalization. The total market value of a companys available shares is measured by capitalization.
7.
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.