In november 2006, Citigroups stock (NYSE:C) was trading at $49.59. Following the credit crisis on 2007-2008 and by at the end of october 2009, Citigroup stock price has plummeted to $4,27 Several banks went under, adn the other saw their stock prices lose more than 60% of their value.

Based on your understandingof stock prices and intrinsic, values, which of teh follinw statements is true? 1. a stock's market price is often based on investors perceived risk in the company.

2. The intrinsic value of a stock is based only on perceived investor returns.