CFA Practice Question
Which value definition is the perceived actual value of an asset?
B. Intrinsic value.
C. Going concern value.
A. Fair market value.
B. Intrinsic value.
C. Going concern value.
Correct Answer: B
User Contributed Comments 4
| User | Comment |
|---|---|
| rhardin | I thought it was A - Fair market value. Because it doesn't really matter what our calculations are to find intrinsic value... if no one will buy at that price, then it is not the actual value. Any thoughts? |
| clee086 | I also thought it was A - Fair Market Value because that is what its traded for on the market... So that would be its actual value; while intrinsic value is a estimation based on perceived variables. |
| DariSH | This is a good one. The key word is PERCEIVED. |
| tushi123 | the 'perceived' value is what the investor perceives as the intrinsic value of the asset, and then invests if the market value<perceived value, expecting to make a profit. |