If a security is undervalued, some investors would capitalize from 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 and investors purchase it, the demand for the security increases, which causes the price to rise. This results in a higher return for those investors who capitalized on the undervalued security.

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