The Primary Objective of Fundamental Analysis Is to Identify ________

question 55

Multiple Choice

The primary objective of fundamental analysis is to identify ________.

• A)well run firms
• B)poorly run firms
• C)mis-priced shares
• D)high P/E shares

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Definitions:

Lower Unemployment

A condition characterized by a reduction in the number of people who are actively seeking work but unable to find employment.

Higher Inflation

An economic condition characterized by a significant increase in prices and a decrease in the purchasing value of money.

Annual Output

The aggregate sum of products and services generated by an economy or company within a single year.

Standard of Living

A measure of the economic welfare and the quality of life of a population, based on income, employment, class disparity, poverty rate, and housing affordability.