During the U.S. stock market collapse of 2007, Paula's financial advisor recommended that she invest in a number of pharmaceutical companies while their stock values were down considerably. He expected these companies to maintain high dividend yields, making them attractive to investors. If Paula follows her financial advisor's recommendations, she is

Question

Quizplus · Accepted Answer

Paula's financial advisor is recommending that she invest in a number of pharmaceutical companies while their stock values are down considerably. He expects these companies to maintain high dividend yields, making them attractive to investors. This is an example of fundamental trading advice, which is based on the analysis of a company's financial statements and other fundamental data to determine its intrinsic value.