Question

values stock 20000 A ***stock overvalued by 10% B *** stock undervalued by 10%

Answer 1

Value of stock is overvalued by 10 % means the, it's value crossed the limit and increased by 10 %, so to correct we have to find 10 % of 20,000 viz. Is 2,000 and deduct from it. So it would be 18,000.

Similarly, 10 % stock is undervalued to find 10 % and add the amount
22,000 ( 20,000 + 2,000)