An analyst estimates the intrinsic value of a stock to be in the range $79 to $61. The current market price of the stock is $58. If the analyst is correct in their estimation of intrinsic value, the stock is likely to be: O A. Over-valued O B. Under-valued OC. Fairly-valued

An analyst estimates the intrinsic value of a stock to be in the range $79 to $61. The current market price of the stock is $58. If the analyst is correct in their estimation of intrinsic value, the stock is likely to be: O A. Over-valued O B. Under-valued OC. Fairly-valued

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

An analyst estimates the intrinsic value of a stock to be in the range $79 to $61. The current market price of the stock is $58. If the analyst is correct in their estimation
of intrinsic value, the stock is likely to be:
O A. Over-valued
O B. Under-valued
OC. Fairly-valued

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