The objective of fundamental analysis for a security in a market is to identify either it is:

Related MCQs

• Fundamental analysis focuses on predicting the future price of a security and Technical analysis on estimating the intrinsic value of a security.
• According to security market line, the expected return of any security is a function of:
• Fundamental analysis, does not concentrate on the fundamental factors affecting the company such as
• Analysis carried out on the performance of a fund for last year is compiled as under: Total selectivity 2.50% Net selectivity 1.53% of portfolio 0.90 Return on market index 13.00% Standard deviation of market returns 13.50% Risk free return, Rf 8.00% The total risk ( i) of portfolio is
• When ranking the riskiness of securities using the standard deviation, the highest risk security to the lowest risk security is as follows:
• You invest 55% of your money in security A with a beta of 1.4 and the rest of your money in security B with a beta of 0.9. The beta of the resulting portfolio is
• 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.
• The fundamental analyst compares this intrinsic value (true worth of a security based on its fundamentals) with the
• Which of the following is on the horizontal axis of the Security Market Line?
• The Security Risk Evaluation book published by Merrill Lynch uses the __________ as a proxy for the market portfolio.