Explain what fungibility means

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Reference no: EM131231873

a. For technical analysis to be used, the asset being traded must be substitutable. Explain what fungibility means and why fungible assets are a prerequisite for technical analysis.

b. For technical analysis to be used, the market in which the security is trading must be sufficiently liquid. Explain what liquid means in this context and why liquidity is a prerequisite for technical analysis.

c. Explain the differences among informed, uninformed, and liquidity market participants.

Reference no: EM131231873

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