Generally, Because of the Unpredictability of Earnings, Cyclical Stocks Are

question 68

True/False

Generally, because of the unpredictability of earnings, cyclical stocks are given higher price-earnings multiples than growth stocks.

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Definitions:

Lease

A contract by which one party conveys land, property, services, etc., to another for a specified time, usually in return for periodic payments.

Opportunity Cost

The worth of the best alternative given up due to making a decision.

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.

Tuition

The fee that educational institutions charge for instruction and training.