Fundamental analysts assume that the market price and intrinsic value of a stock:
A) are always in equilibrium.
B) can differ from time to time.
C) do not bear any discernable relationship to each other.
D) are strongly related to the par value of the underlying security.

Question

Quizplus · Accepted Answer

Fundamental analysts believe that the market price of a stock can deviate from its intrinsic value due to various factors, but over time, the market will correct these discrepancies.

Fundamental Analysts Assume That the Market Price and Intrinsic Value