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Business, 06.05.2020 06:10 awsomeboy12345678

In November 2006, Citigroup’s stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007–2008 and by the end of October 2009, Citigroup’s stock price had plummeted to $4.27. Several banks went under, and others saw their stock prices lose more than 60% of their value.

Based on your understanding of stock prices and intrinsic values, which of the following statements is true?

A. A stock's intrinsic value is based on true risk in the company
B. A stock's market price is based only on true investor returns.

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In November 2006, Citigroup’s stock (NYSE: C) was trading at $49.59. Following the credit crisis of...

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