One of the basic premises of security analysis, and in particular fundamental analysis, is that

One of the basic premises of security analysis, and in particular fundamental analysis, is that



A) a stock's price is based on its past cash flows rather than on anticipated future cash flows.
B) market sectors do not move in concert with business cycles.
C) all securities have an intrinsic value that their market value will approach over time.
D) a security's risk has relatively little effect on the security's return.

Answer: C