Dividend discount models and P/E ratios are used by __________ to try to find mispriced securities.

Question

Quizplus · Accepted Answer

Dividend discount models and P/E ratios are used by fundamental analysts to analyze the intrinsic value of a security and compare it to its current market price. This helps the analyst identify whether the security is overvalued or undervalued and make investment decisions accordingly. Technical analysts use charts and patterns to identify trends and market movements, while statistical analysts use complex mathematical models to analyze data and make predictions. Dividend analysts may focus solely on a company's dividend payments and growth.

Dividend Discount Models and P/E Ratios Are Used by __________