Which type of analysis evaluates securities based on external economic factors?

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Fundamental analysis is the type of analysis that evaluates securities based on external economic factors. This approach involves examining a company's financial statements, market position, competitive landscape, and the overall economy, which includes factors like interest rates, inflation, and economic growth. By assessing these elements, fundamental analysts aim to determine the intrinsic value of a security and make informed investment decisions.

This type of analysis contrasts with others like behavioral analysis, which focuses on investor psychology; technical analysis, which looks at price movements and trading volume; and statistical analysis, which utilizes statistical tools to analyze data sets for trends and patterns. All these other analyses have distinct methodologies and focus areas that do not prioritize external economic factors as integral to the assessment of securities.

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