________ offer the advantage of ease of application offset by a lack of precision.
A)Relative valuation methods
B)Absolute valuation methods
C)Discounted cash flow methods
D)The Fama-Jensen methods

Question

Quizplus · Accepted Answer

Relative valuation methods, such as price-to-earnings or price-to-book ratios, are easy to calculate and apply, but they do not offer as precise a measure of a company's value as other methods, such as discounted cash flow analysis or the Fama-Jensen method.

________ Offer the Advantage of Ease of Application Offset by a Lack