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Chartered Investment Manager (CIM) Practice Exam · Question

Which investment strategy relies on identifying undervalued securities that trade below their intrinsic value?

Value investing is an investment paradigm that involves buying securities that appear to be trading for less than their intrinsic or book value. Value investors

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Question: Which investment strategy relies on identifying undervalued securities that trade below their intrinsic value?

Answer options:

  • Growth investing.
  • Momentum investing. ✅ Value investing.
  • Quantitative investing.

Correct answer: Value investing.

Explanation: Value investing is an investment paradigm that involves buying securities that appear to be trading for less than their intrinsic or book value. Value investors actively seek out stocks they believe the market has undervalued.

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