Question #34
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 12
Status: Unattempted
Correct Answer: B
Question
An analyst performing an asset valuation to detect investor's expectations about the future value of the variables that affect a stock's price is most likely using the valuation for:
Answer Choices:
A. reading the market
B. projecting the value of corporate actions
C. generating a fairness opinion
Explanation
Asset valuation has many uses including stock selection, reading the market, projecting
the value of corporate actions, issuing fairness opinions, and valuing private businesses.
Reading the market entails detecting investor's expectations about the future value of the
variables that affect a stock's price.