CFA Practice Question

There are 201 practice questions for this study session.

CFA Practice Question

Which statement is true?

I. Intrinsic value may or may not be the same as the current market value.
II. Investment value can be either higher or lower than market value.
A. I only
B. II only
C. Both I and II
Explanation: Investors try to find over- or under valued assets (intrinsic value vs. market value).

User Contributed Comments 4

User Comment
bansal If the investment value is lower than market value that why would it be called investment value?
easyone investment value is the value from investment. it can be higher or lower than the market value.
ilgibe or equal...
DariSH Investment value is a firm's value to a specific investor. They have their own vision of the price (like would they receive synergies from acquiring a company). Therefore an individual investor's price might be either higher or lower than the market one.
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