Fundamental analysis shows that stock in Cedar Valley Furniture Corporation has a price that exceeds its present value.
A)This stock is overvalued;you should consider adding it to your portfolio.
B)This stock is overvalued;you shouldn't consider adding it to your portfolio.
C)This stock is undervalued;you should consider adding it to your portfolio.
D)This stock is undervalued;you shouldn't consider adding it to your portfolio.

Question

Quizplus · Accepted Answer

Fundamental analysis has shown that the stock price exceeds its present value, which means that the stock is overvalued. Therefore, it is not a good idea to add it to your portfolio as it may not provide a good return on investment.

Fundamental Analysis Shows That Stock in Cedar Valley Furniture Corporation