If a security is undervalued, some investors would capitalize on this by purchasing that security. As a result, the security's price will ____, resulting in a ____ return for those investors.

Question

Quizplus · Accepted Answer

If a security is undervalued, investors would purchase it, resulting in an increase in demand for the security which would cause the price to rise. This would lead to a higher return for the investors who capitalized on the undervaluation.

If a Security Is Undervalued, Some Investors Would Capitalize on This