1.1)Critically evaluate the following statement made by a quantitative fund investment manager: It is not worth the time to develop fundamentals-based forecasts of earnings or cash flows, and there is no point in using sophisticated equity valuation models to determine the value of a stock. I can be as accurate, at virtually no cost, by using some random walk models to forecast earnings and free cash flow, and some technical trading rules to spot mispriced stocks.

1.2)With reference to relevant literature, critically evaluate the role of Intellectual Capital information in the process of sell-side analysts determination of earnings forecasts, stock valuations and investment recommendations.