If a Security Is Undervalued, Some Investors Would Capitalize on This

question 6

Multiple Choice

If a security is undervalued, some investors would capitalize on this by purchasing that security. As a result, the security's price will ____, resulting in a ____ return for those investors.

• A) rise; lower
• B) fall; higher
• C) fall; lower
• D) rise; higher

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Definitions:

Ethical Decisions

Choices made based on moral principles and values aimed at doing what is right and fair.

Ethical, Legal, Social Responsibility

The obligation of individuals and organizations to act in a manner that is morally correct, abides by the law, and benefits society.

Audit Process

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.

Social Responsibility

The concept of organizations and individuals acting in a manner that considers the long-term impacts of their actions on the environment and society as a whole.