Which of the following is correct? A) If estimated value Market price, you should buy. B) If estimated value Market price, you should sell. C) If estimated value

Question

Which of the following is correct? A) If estimated value > Market price, you should buy. B) If estimated value > Market price, you should sell. C) If estimated value < Market price, you should sell. D) If estimated value < Market price, you should buy. E) Choices a and c.

Quizplus · Accepted Answer

If the estimated value is greater than the market price, it suggests the asset is undervalued, so you should buy. Conversely, if the estimated value is less than the market price, it suggests the asset is overvalued, so you should sell.

Which of the Following Is Correct