Which of the following is true?
A) Historically, high P/E or growth stocks have outperformed low P/E or value stocks.
B) Historically, low P/E or value stocks have outperformed high P/E or growth stocks.
C) After adjusting for risk, high P/E or growth stocks and low P/E or value stocks have performed about the same over time.
D) the P/E effect is limited to U.S. stocks.
Answer: B
You might also like to view...
A company is uncertain whether a complex transaction should be recorded as gain or loss. Under the conservatism principle, it should choose to treat it a loss
Indicate whether the statement is true or false
It is not possible to reconfigure the available data, for example, convert the units of measurements, so that the resulting data are more useful to the problem at hand
Indicate whether the statement is true or false