n NISM Certifications
X NISM Series X
Medium

If XYZ Ltd’s market price exceeds its intrinsic value, it is considered:

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 7 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A good investment opportunity

  2. B

    A good opportunity for future gains

  3. Not a good investment choice

    Correct answer

  4. D

    Irrelevant to decision-making

Why this is the answer

Buying stocks above their intrinsic value is generally unwise, as they are overvalued and may decline.

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