A security is said to be ________ if its current market price is over its intrinsic value.

Related MCQs

• Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.
• The fundamental analyst compares this intrinsic value (true worth of a security based on its fundamentals) with the
• If the current market price is considered as a basis of CAPM, then what would happen if Actual Market Price < CAPM,
• Which type of chart includes daily high price, low price, opening price, and closing price?
• Ms. Kiran wrote a European call option on a stock. The premium was Rs.5 per share and the market price and exercise price of the share were Rs.39 and Rs.45 respectively. If on expiry date, the price of the share was Rs. 42, the profit/loss to Ms. Kiran was
• Which of the following is/are true if a firm has a required rate of return equal to the ROE? I. The amount of earnings retained by the firm does not affect market price or the P/E. II. The firm can increase market price and P/E by increasing the growth rate. III. The P/E ratio is inversely proportional to the ROE of the firm.
• Which of the following statements is/are true with respect Capital Market Line (CML)? I. It is the line passing from risk-free rate through market portfolio. II. The slope of CML is called market price of risk. III. CML fails to express equilibrium pricing relationship between expected return and standard deviation for all efficient portfolios lying along the line.
• According to security market line, the expected return of any security is a function of:
• In which form of the efficient market hypothesis do security prices reflect only past stock price and volume information?
• The intrinsic value of an out-of-the-money call option is