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Day Trading MCQs

What would a trader do if they calculated a price based on fundamental analysis which was higher than the current market price?

Purchase the stock as it will potentially normalize back to the calculated price.

Nothing; they would wait and see what happens.

Tell their friends to short sell the stock.

Call the company and ask why.

Answer

Correct Answer: Purchase the stock as it will potentially normalize back to the calculated price.

Explanation:

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