n NISM Certifications
XXI NISM Series XXI-A
Medium

The "Intrinsic Value" of a stock refers to:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Its current market price

  2. The true underlying value based on fundamentals

    Correct answer

  3. C

    The book value of the stock

  4. D

    The average of its high and low prices

Why this is the answer

Intrinsic value is an estimate of a stock’s true worth.

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