Which of the following statements is correct?

In the markets, investors purchase assets with market values above their intrinsic values (overvalued assets) and sell assets with market values below their intrinsic values (undervalued assets).

The free cash flow (FCF) model shows that the value of the entire firm is the present value of the expected future operating cash flows less expected investments (short and long-term).

All the answers are correct.

An increase in the required return increases the value of the asset.

Relative value models provide a way to value a stock relative to other similar stocks using valuation ratios such as the Earnings to Price (E/P) ratio.