Intrinsic Value = Market Value ?

CFA Level II
#1

I’ve done various items sets from schweser and have found that they want us to infer that intrinsic value always equals market value.

For e.g I had a question where I had to find the expected return in a DDM model. I usually just use trial and error for these type of questions. A DDM model calculates the intrinsic value of a stock…however wouldnt using the Actual market price (instead of intrinsic value) as an input to calculate the expected return be incorrect?

Should we always just infer that Market price = Intrinsic value if only market price is given in the exam?

Cheers

Tom

#2

Would have thought Intrinsic Value = Market Value only if the asset is priced correctly in the market.

#3

thats what i thought. That dont make that distinction in schweser item sets…This is how schweser throws you off in their practise exams, things like this.