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Suppose a hedge fund buys a stock its managers believe to be undervalued. If fund owners withdraw their money, forcing the fund to liquidate the
Suppose a hedge fund buys a stock its managers believe to be undervalued. If fund owners withdraw their money, forcing the fund to liquidate the position before the market recognizes the stocks correct value, which is more likely to happen?
The stocks undervaluation will be immediately corrected
The intrinsic value will decrease
The stock will become more undervalued
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