The practice of evaluating the information contained in financial statements,industry reports,and economic factors to determine the intrinsic value of a firm is called
A) Asset valuation.
B) Technical analysis.
C) Price theory.
D) Fundamental analysis.
E) Industry analysis.

Question

Quizplus · Accepted Answer

Fundamental analysis involves analyzing a company's financial statements, industry reports, and economic factors to determine its intrinsic value. Therefore, D is the correct answer. Asset valuation refers to determining the value of a particular asset, and technical analysis is based on studying past market data to forecast future price movements. Price theory deals with the study of how prices are determined in the market, while industry analysis is focused on analyzing the industry in which a company operates.

The Practice of Evaluating the Information Contained in Financial Statements,industry