n NISM Certifications
X NISM Series X
Medium

Which of the following is NOT an assumption of fundamental analysis?

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. Market values exhibit predictable patterns

    Correct answer

  2. B

    Market price can differ from intrinsic value

  3. C

    Prices move toward intrinsic value over time

  4. D

    Fundamental analysis identifies undervalued stocks

Why this is the answer

Predictable price patterns are an assumption of technical analysis, whereas fundamental analysis focuses on intrinsic value, financial performance, and long-term valuation.

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