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Fundamental Analysis Determines That the Price of a Firm's Stock

Question 71

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Fundamental analysis determines that the price of a firm's stock is too low,given its intrinsic value.The information used in the analysis is available to all market participants,yet the price does not seem to react.The stock does not trade on a major exchange.What concept might explain the ability to produce excess returns on this stock?


A) January effect
B) Neglected firm effect
C) P/E effect
D) Reversal effect

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