Question

2. Fair value of the share is equal to
(a) Intrinsic value only
(b) Yield value only
(c) Average of Intrinsic value and Yield value
(d) None of the above​

Answer 1

Answer:

c)Average of intrinsic value and yield value

Answer 2

The Correct Option is...

✔ c) Average of Intrinsic value and Yield value

Explanation ⦂

The fair value of the share is equal to the average of the Intrinsic value and Yield value.

Intrinsic value is a measure of the value of an asset. This measure is obtained through an objective calculation or complex financial model rather than using the current trading market value of that asset.

The yield value is the resistance to the initial flow or represents the stress required to initiate fluid movement.

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