Series 79 practice questioneasyFairness Opinions
According to standard industry practices, which of the following is typically disclosed in a fairness opinion letter?
- ABoard members’ personal views on the transaction
- BAuditor’s certification of target financials
- CProjected stock price performance post-closing
- DCritical assumptions and limitations underlying the opinion✓ Correct answer
Explanation
Why D — Critical assumptions and limitations underlying the opinion
Fairness opinions must disclose key assumptions and limitations; omitting these could mislead the board and shareholders. Personal views and future price predictions are not standard disclosures.
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