Many Investors Use Screening Techniques to Find One of Two

question 29

Multiple Choice

Many investors use screening techniques to find one of two kinds of stocks.One kind is stocks of firms that exhibit sales and earnings growth rates that significantly exceed the industry averages.Another kind is stocks of firms that are mispriced,especially those that are undervalued.What are these two types of stocks called?

• A) preferred stocks and common stocks
• B) growth stocks and value stocks
• C) advancing stocks and declining stocks
• D) efficient stocks and inefficient stocks

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