[Solved] Which One of the Following Best Describes Fundamental Risk

Question 63
Multiple Choice

Which one of the following best describes fundamental risk?

A) A stock is overpriced but your fund does not allow you to engage in short sales.
B) Your models indicate a stock is mispriced but you are not sure if this is a real profit opportunity or a model input error.
C) You buy a stock that you believe is underpriced and the underpricing persists for a long time, hurting your short term results.
D) A stock is trading in two different markets at two different prices.

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