
Explanation:
Momentum Indicators are technical analysis tools that measure the rate of change in price movements over time.
Option A is CORRECT Comparing a stock's current price to its historical price series is a classic momentum indicator. This includes:
Option B is INCORRECT Comparing price multiples to benchmarks is more related to relative valuation or fundamental analysis, not momentum.
Option C is INCORRECT Comparing earnings multiples across companies is also a relative valuation technique, not a momentum indicator.
Key Distinction:
Ultimate access to all questions.
An example of a momentum indicator is comparing the:
A
price of a stock to a time series of its past value.
B
stock's price multiple with relevant benchmark multiples.
C
earnings multiple of a company to earnings multiples of similar companies.
No comments yet.