1. A basic assumption of technical analysis in contrast to fundamental analysis is that:

   1. The stock market is inefficient

   2. Financial statements provide information crucial in valuing a stock

   3. A stock's price will approach its intrinsic value over time

   4. A technical analyst would evaluate the amount of short selling, the volume of trading, and the P/E ratio of a stock

   5. Security prices move in patterns, which repeat over long periods

2. A resistance level is the price range at which technical analysts would expect the (choose all that are correct):

   1. Demand of a stock to decrease substantially

   2. Demand of a stock to increase substantially

   3. Supply of a stock to increase substantially

   4. Supply of a stock to decrease substantially

   5. Both b and d