If an analyst estimates the intrinsic value for a security that is different from its market value, the analyst should most likely take an investment position based on this difference if:

If an analyst estimates the intrinsic value for a security that is different from its market value, the analyst should most likely take an investment position based on this difference if:



A) many analysts independently evaluate the security.


B) the model used is not highly sensitive to its input values.


C) the security lacks a liquid market and trades infrequently.



Answer: B


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