Final Answer:
The statement is False. The daily high can indeed be higher than the 52-week high. Thus the correct option is 2.
Step-by-step explanation:
The 52-week high represents the highest price a security has reached over the past 52 weeks. However, the daily high refers to the highest price a security reaches on a given day. The daily high can surpass the 52-week high if, on a specific day, the price of the security rises above the highest price recorded within the past 52 weeks. Therefore, it is entirely possible for the daily high to exceed the 52-week high, making the statement false.
Investors often monitor both the daily high and the 52-week high to gain insights into a security's price movements. While the 52-week high provides a longer-term perspective, the daily high offers real-time information about a security's performance on a particular day. Understanding the distinction between these two metrics is crucial for investors making informed decisions based on both short-term and long-term price trends.
In financial markets, the interplay of daily and 52-week highs provides valuable information for traders and investors, allowing them to assess market sentiment, potential price breakouts, and overall trends in asset prices.