Attempting to forecast future earnings and dividends is consistent with which of the following approaches to securities analysis?

A) technical analysis
B) fundamental analysis
C) both technical analysis and fundamental analysis
D) indexing

Forecast Future Earnings

The process of predicting a company's future profits based on historical data, current trends, and analysis of the firm's industry and economy.

Securities Analysis

The process of evaluating a security (stocks, bonds, etc.) in terms of its risk, value, and investment potential.

Fundamental Analysis

An approach to determining the intrinsic value of a security by examining related economic, financial, and other qualitative and quantitative factors.