- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 41. Equity Valuation: Concepts and Basic Tools
- Subject 7. Asset-Based Valuation
CFA Practice Question
The theory underlying the asset-based approach is that the ______
B. value of a business is equal to the sum of its parts.
C. value of a stock can be evaluated based on comparisons of multiples of similar stocks.
A. intrinsic value of a security is the present value of the future benefits expected to be received from the security.
B. value of a business is equal to the sum of its parts.
C. value of a stock can be evaluated based on comparisons of multiples of similar stocks.
Correct Answer: B
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