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Basic Question 1 of 3
Stock valuation would be useful if an analyst wants to
II. select stocks with high liquidity.
III. minimize her overall execution costs.
IV. evaluate the impact of a new business model implemented by the company's marketing department.
I. predict how soon the price of an undervalued stock will go up by 10%.
II. select stocks with high liquidity.
III. minimize her overall execution costs.
IV. evaluate the impact of a new business model implemented by the company's marketing department.
User Contributed Comments 1
User | Comment |
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vi2009 | valuation is not about prediction. |

You have a wonderful website and definitely should take some credit for your members' outstanding grades.

Colin Sampaleanu
Learning Outcome Statements
contrast absolute and relative valuation models and describe examples of each type of model;
describe sum-of-the-parts valuation and conglomerate discounts;
explain broad criteria for choosing an appropriate approach for valuing a given company.
CFA® 2025 Level II Curriculum, Volume 3, Module 20.