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20. The analysis of the determinants of firm value is called _____________.

A. fundamental analysis
B. technical analysis
C. momentum analysis
D. indexing

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User Vitfo
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1 Answer

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Final answer:

A. Fundamental analysis is a method used to determine the intrinsic value of a company by examining its financial health, management, and market conditions.

Step-by-step explanation:

The analysis of the determinants of firm value is called fundamental analysis. This method involves evaluating a company's financial statements and health, management, competitive advantages, and its competitors and markets to establish its fair value. It helps investors determine the intrinsic value of a security, rather than basing investment decisions primarily on market trends, as is common in technical analysis.

Unlike momentum analysis, which focuses on the speed of the market movements, or indexing, which involves replicating the performance of a specific index, fundamental analysis provides a deeper look into the actual business performance and potential.

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User Vishal Khialani
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