Question

Which of the following outcomes of providing accounting information is an attempt to identify individual securities that are mispriced by reviewing all available financial information ?a. Agency theoryb. Fundamental analysisc. Efficient marketsd. Capital asset pricing model

Answer 1

Answer:

The correct answer is: b. Fundamental analysis.

Explanation:

Fundamental analysis can be understood as a commonly used method that aid to evaluate and analyze the intrinsic value of a specific asset and the evaluation of its evolution and modification of said value across time.

It is a thorough review of all the available financial information while being aware of the effects that external events and influences have on particular asset value.

In conclusion, to the question Which of the following outcomes of providing accounting information is an attempt to identify individual securities that are mispriced by reviewing all available financial information? The correct answer is: b. Fundamental Analysis.