Ans is A why not b ?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
When they say “Intrinsic Value”, they mean the Actual Unobservable Intrinsic value (V). “Estimated Intrinsic Value” refers to what the analyst estimates, which in turn comprises of two components.
The first component is the true but unobservable intrinsic value. The second component is the valuation error.
The difference between the Actual Intrinsic Value and the Market Price is the perceived mispricing. Hence, Option A.