Which of the Following Statements Regarding Fundamental and Relative Valuation

question 32

Multiple Choice

Which of the following statements regarding fundamental and relative valuation techniques is true?

• A) Both techniques require an appropriate estimate of the required rate of return and the growth rate.
• B) Both techniques require an estimate of future cash flows and a discount rate.
• C) Both techniques require an estimate of future cash flows and a growth rate.
• D) Both techniques require an estimate of future cash flows, the required rate of return and a growth estimate.
• E) All of the above are true.

---

Definitions:

Cognitive Appraisal Theory

A psychological theory that suggests emotions are determined by an individual's assessment of a situation's significance to their well-being.

Cross-Cultural Value

Values or standards of behavior that are endorsed or prioritized differently across cultures.

Benevolence

The quality of being well-meaning; kindness.

Security

Denotes measures and protocols implemented to protect against theft, attack, or other threats to safety and stability.