a. True b. False are always good investments 9-The fall in interest rate will lead to higher GDP, consequently, asset prices will increase because lower discount rates are used for computing present values a. True b. False a firm in the same industry with P/E ratio of 10. 10-In relative valuation the firm with P/E ratio of 30 is always better investment than a. True b. False cu-The goal of fundamental analysis is to come up with a fair value of a company by evaluating all aspects of the business, along with the industry, the market as a whole, and the domestic and global environment. a. True b. False 12-The goal of fundamental analysts is to find securities a. whose intrinsic value exceeds market price. b. with a positive present value of growth opportunities. c. with high market capitalization rates. d. All of these are correct. e. None of these is correct. 13-In valuation, the investor is more likely to take position based on the estimated intrinsic value, when the percentage difference between market prices and estimated value becomes small. a. True b. False 14-In tight (contractionary) fiscal and monetary policy, interest rate will be and GDP will be lower, asset prices --- because higher discount rates are used for computing present values a. higher; decrease b. lower; increase c. higher; increase J. lower; decrease BDSON