According to Peter Lynch, a Rough Rule of Thumb for Security

question 91

Multiple Choice

According to Peter Lynch, a rough rule of thumb for security analysis is that

• A) the growth rate should be equal to the plowback rate.
• B) the growth rate should be equal to the dividend-payout rate.
• C) the growth rate should be low for emerging industries.
• D) the growth rate should be equal to the P/E ratio.
• E) None of the options are correct.

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Definitions:

Infrared Wavelength

Electromagnetic radiation wavelengths longer than visible light but shorter than microwaves, used in heating, remote controls, and night vision.

Wavenumber

A measure of the number of wave cycles per unit of distance, typically used in spectroscopy.

Wavenumber

A measure of the number of wavelengths per unit length, typically used in spectroscopy to denote energy levels.

Wavelength

The distance between successive crests of a wave, typically used in the context of electromagnetic spectrum.