The process of fundamental valuation requires estimates of all the following factors,except A) The time pattern of returns. B) The economy's real risk-free rate. C) The risk premium for the asset. D) The times series of stock prices. E) The expected rate of inflation.

Question

Quizplus · Accepted Answer

The time series of stock prices is not a factor that needs to be estimated in the process of fundamental valuation. The other factors listed are all necessary for determining an asset's fundamental value.

The Process of Fundamental Valuation Requires Estimates of All the Following