Studies of the Relationship Between P/E Ratios and Stock Returns

question 58

Multiple Choice

Studies of the relationship between P/E ratios and stock returns have found that

• A) Low P/E stocks of large cap stocks outperformed low P/E stocks of small cap stocks.
• B) Low P/E stocks of small cap stocks outperformed high P/E stocks of large cap stocks.
• C) High P/E stocks of large cap stocks outperformed low P/E stocks of small cap stocks.
• D) High P/E stocks of large cap stocks outperformed high P/E stocks of small cap stocks.
• E) none of the above.

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Definitions:

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, including the range of species, genetic variation, and ecosystem variety.

Improved Efficiency

The enhancement of a system or process's ability to achieve a desired output with minimal input, energy, or effort.

Avoid Being Eaten

This term is not a standard scientific or technical key term; it could refer to the strategies or behaviors organisms use to evade predators.

Batesian Mimicry

Batesian mimicry is a form of mimicry where a harmless species evolves to imitate the warning signals of a harmful species to deter predators.