Which of the Following Statements About Investment Style Is false

question 36

Multiple Choice

Which of the following statements about investment style is false?

• A) Growth stocks generally have smaller capitalizations than value stocks.
• B) Value stocks have P/E and P/B ratios significantly lower than those of growth stocks.
• C) Value stocks dividend yields are much higher than those of growth stocks.
• D) Growth and levels of earnings is higher in growth stocks.
• E) Value stocks have a higher risk premium.

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Definitions:

World Views

The fundamental cognitive orientation of an individual or society encompassing natural philosophy, fundamental existential and normative postulates, or themes, values, emotions, and ethics.

Belief Systems

A set of principles or tenets which form the basis of a religion, ideology, or personal conviction.

Conventional Level of Moral Development

A stage in Kohlberg's theory where moral reasoning is based on conforming to social rules, laws, and gaining approval from others.

Realistic and Obtainable Goals

Objectives set in a way that they can be realistically achieved within a given timeframe, considering available resources and constraints.