An investment theory based on the assumption that a stock's intrinsic or real value is determined by the future earnings of the company is called the ____________ theory.
A) fundamental
B) technical
C) efficient market
D) primary
E) market

Question

Quizplus · Accepted Answer

The fundamental theory holds that a stock's value is based on its underlying or intrinsic characteristics, such as the company's projected earnings, financial health, and industry outlook. This theory assumes that the stock's price will ultimately reflect its true worth over time.

An Investment Theory Based on the Assumption That a Stock's