Investors who compare a firm's discounted future cash flows to the current market price of a stock are using the

A) efficient market hypothesis.
B) market-to-market approach.
C) fundamental analysis approach.
D) technical analysis approach.

Investors who compare a firm's discounted future cash flows to the current market price of a stock are using the fundamental analysis approach, which involves evaluating a company's financial and economic fundamentals to determine its intrinsic value, as opposed to relying on market trends or technical indicators. The efficient market hypothesis suggests that the stock market incorporates all available information about a company and its future prospects into its current price, making it difficult to beat the market through analysis or forecasting. The market-to-market approach involves valuing assets or investments based on their fair market value at a given point in time, rather than their underlying fundamentals. Technical analysis involves using charts and statistical indicators to predict future market movements based on patterns and trends in past market data.