CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

Which value definition is the perceived actual value of an asset?

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.
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