3. Stock prices and intrinsic values Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long run, the market is a weighing machine. In this quote, Benjamin Graham was referring to the key difference between the "price" and the "value" of a security In November 2006, Citigroup's stock (NYSE: C) was trading at $49.59. Following the credit crisis of 2007-2008 and 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? O A stock's intrinsic value is based on true risk in the company O A stock's market price is based only on true investor returns. You can estimate the value of a company's stock using models such as the corporate valuation model and the dividend discount model. Which of the following companies would you choose to evaluate f you were using the corporate valuation model to estimate the value of the company's stock? O A compan O A company that has a stable distribution policy y that is not expected to distribute any earnings to its stockholders for the next few years Fiash Player MAC 28,0,0,1