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SOLUTIONS TO EXERCISES AND CASES For FINANCIAL STATEMENT ANALYSIS AND SECURITY VALUATION Stephen H. Penman Fifth Edition(VERIFIED)
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SOLUTIONS TO 
EXERCISES AND CASES 
For 
FINANCIAL STATEMENT ANALYSIS AND SECURITY 
VALUATION 
Stephen H. Penman 
Fifth Edition 
CHAPTER ONE 
Introduction to Investing and Valuation 
Concept Questions 
1 
VERIFIED 
C1.1.Fundamental risk arises from the inherent risk in the business – 
from sales revenue falling or expenses rising unexpectedly, for example. 
Price risk is the risk of prices deviating from fundamental value. Prices 
are subject to fundamental risk, but can move away from fundamen...
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