- CFA Exams
- CFA Level I Exam
- Study Session 12. Equity Investments (1)
- Reading 38. Market Efficiency
- Subject 1. The Concept of Market Efficiency
CFA Practice Question
In an efficient market, if an asset's intrinsic value is estimated to be $15 while the market price is $12, the asset appears to be ______.
A. overvalued
B. undervalued
C. uncertain
Explanation: In such a market the market price should be very similar to the intrinsic value.
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