Asked by Perla Arceo-Valencia on Jun 03, 2024

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Dividend discount models and P/E ratios are used by __________ to try to find mispriced securities.

A) technical analysts
B) statistical analysts
C) fundamental analysts
D) dividend analysts
E) psychoanalysts

Dividend Discount Models

Methods used to value a company's stock by discounting predicted dividends to present value.

P/E Ratios

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings.

Mispriced Securities

Securities whose market price is significantly different from their intrinsic value due to inefficiencies in the market.

  • Ascertain the elements affecting the mispricing of stocks and the significance of fundamental analysis in determining stock values.
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YH
Yanet HernandezJun 05, 2024
Final Answer :
C
Explanation :
Dividend discount models and P/E ratios are tools used by fundamental analysts to assess the intrinsic value of a stock by examining related financial and economic factors. This helps them identify securities that may be undervalued or overvalued by the market.