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Options
- A
The recommendations will be based on qualitative assessment of the business
- B
The recommendations will be based on the volatility and momentum in share prices
- C
The recommendations will be based on trends and patterns in historical prices and volumes
-
The recommendations will be based on assessment of fair value of the company’s share
Correct answer
Why this is the answer
Fundamental analysis estimates the intrinsic or fair value of a company’s stock based on financials, business outlook, and economic environment. The analyst then compares market price to fair value to recommend buying or selling. Options B and C relate to technical analysis, while qualitative factors alone (A) do not determine the full recommendation.
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