Fundamental analysis is the valuation of stocks based on sensitivity of the firm's performance to economic conditions.

Question

Quizplus · Accepted Answer

Fundamental analysis involves evaluating a company's financial statements, management, industry trends, and macroeconomic factors to determine its intrinsic value and potential future performance. It takes into consideration such economic conditions as interest rates, inflation, and GDP growth when analyzing the company's fundamentals. Therefore, the statement that fundamental analysis is the valuation of stocks based on sensitivity of the firm's performance to economic conditions is true.

Fundamental Analysis Is the Valuation of Stocks Based on Sensitivity