Suppose fundamental analysis indicates that XYZ Corporation’s stock is undervalued. Group of answer choices This means its present value is less than its price. You should consider adding the stock to your portfolio. This means its present value is less than its price. You shouldn’t consider adding the stock to your portfolio. This means its present value is more than its price. You should consider adding the stock to your portfolio. This means its present value is more than its price. You shouldn’t consider adding the stock to your portfolio.

You shouldn't add the stock to your portfolio.

This statement is true.

Explanation:

An undervalued stock is characterised as an asset that sells significantly below the supposed intrinsic value at a profit.

For Example, if the stock sells for $50, but on the premise that future cash flows are expected, it is an undervalued stock.

If you pay excessively, you will lose part or all of your earnings. The same happens when you purchase a stock below its current market value. Purchasing an inflated stock ensures you that the chances of losing money even though it is not profitable for the company.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

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