Suppose three honest individuals gave you their estimates of Stock X’s intrinsic value. Oneperson is your current roommate, the second person is a professional security analyst withan excellent reputation on Wall Street, and the third person is Company X’s CFO. If thethree estimates differed, in which one would you have the most confidence? Why?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose three honest individuals gave you their estimates of Stock X’s intrinsic value. One
person is your current roommate, the second person is a professional security analyst with
an excellent reputation on Wall Street, and the third person is Company X’s CFO. If the
three estimates differed, in which one would you have the most confidence? Why?

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