Jack is working on estimating the expected growth rate for a business. Because of Recession, its earnings have dropped significantly (negative growth rate). Nevertheless, Jack feels that it has bottomed out and is in the course of improving. Comapny is heavily followed by analysts, who have a good track record in forecasting earnings growth.

Jack should:

options:

1. use the historical growth rate as the estimate for the expected growth rate.
2. weight the analysts' forecasts the most and historical growth rates the least (or not at all).
3. ignore this company, because it has no potential.