1. One of the basic premises of security analysis, and in particular fundamental analysis, is that A) a stock's price is based on its past cash ows, rather than on anticipated future cash ows. B) market sectors do not move in concert with business cycles. C) all securities have an intrinsic value, but some securities may be incorrectly priced in the market at any given time. D) a security's risk has relatively little effect on the security's return. 2. Increases in interest rates and increases in taxes both tend to A) have an expansionary impact on the economy. B) have a contractionary impact on the economy. C) signal the beginning of a bull market. D) signal the trough of a recessionary market