A Growth Stock Portfolio and a Value Portfolio Might Be

question 39

Multiple Choice

A growth stock portfolio and a value portfolio might be characterized:

• A) each by their P/E relative to the index P/E; high P/E for growth and lower for value.
• B) as earning a high rate of return for a growth security and a low rate of return for value security irrespective of risk.
• C) low unsystematic risk and high systematic risk respectively.
• D) moderate systematic risk and zero systematic risk respectively.
• E) None of these.