Which of the following is an assumption of fundamental analysis?

Question

Quizplus · Accepted Answer

Fundamental analysis assumes that under-priced shares can be found in the securities market by means of financial statement analysis. This approach involves analyzing a company's financial statements, such as the balance sheet, income statement, and cash flow statement, to determine its intrinsic value and identify potential investment opportunities. It assumes that the market may not always accurately reflect a company's true value, providing opportunities for investors to profit by buying undervalued stocks. The other options (A, B, and C) are assumptions of the efficient-market hypothesis, which argues that securities markets are highly efficient and that prices rapidly reflect all available information.

Which of the Following Is an Assumption of Fundamental Analysis