Which of the Following Is True Regarding Value Funds and Growth

question 48

Multiple Choice

Which of the following is true regarding value funds and growth funds?

• A) Value funds seek stocks that are cheap by fundamental standards while growth funds seek stocks with high current earnings.
• B) Growth funds typically outperform value funds.
• C) Value funds and growth funds tend to perform well at different times.
• D) Value funds typically have higher P/E ratios than growth funds.

---

Definitions:

Lewis Structure

A graphical representation of molecules showing how valence electrons are distributed among atoms, and where dots and lines represent electrons and bonds, respectively.

Water

A molecule composed of two hydrogen atoms bonded to one oxygen atom, essential for all forms of life.

Helium

The second lightest and second most abundant element in the universe, a noble gas that remains liquid at the lowest temperatures.

Lewis Structure

A diagrammatic method for representing the valence electron configuration of atoms, ions, and molecules, indicating bonds and lone pairs.