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Thus if the market price is Rs.120.88, the first individual (let us call him Siddarth) will hold onto the share whereas Nair would sell the share and Kumar would purchase it. In short, the intrinsic value of a share will vary from individual to individual and will be dependant both on that individual's ability to bear risks and the return that individual expects. It is prudent and logical to remove this anomaly. The return expected should be the return one can expect from an alternate, reasonably safe investment in that market. This rate should be bolstered by a risk factor as the return is greater from riskier investments. A very safe investment (blue chip) will have a risk rate of 0. A mature near blue chip share will have a risk rate of 1. A growing company will have risk rate of 2. A risky new company will have a risk rate of 3. If it is assumed that the return one can expect from a unreasonably safe investment (an investment say with the Unit Trust of India) is