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The Purpose of Stock Valuation Is

Question 51

Multiple Choice

The purpose of stock valuation is


A) to set the fair market price for a given common stock.
B) to determine whether the common stock's value is fairly represented by its market price.
C) of limited value, since the efficient market hypothesis proves that all common stock is always fairly priced.
D) to find common stocks whose market price equals the intrinsic value.

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