Even Though No Final Conclusion Is Currently Warranted,a Number of Research

question 4

Multiple Choice

Even though no final conclusion is currently warranted,a number of research papers,including those of Fama and French,have argued that

• A)there is no noticeable difference in the returns of growth versus value stocks.
• B)growth stocks outperform value stocks.
• C)stocks with high book-value-to-stock-price ratios outperform stocks with low ratios.
• D)no observable differences in returns can be associated with varying price-earnings ratios.
• E)stocks with low earnings-to-price ratios outperform stocks with high ratios.

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Definitions:

Long-term

In finance, refers to investments or loans that mature in more than one year; in general use, refers to a duration extending over a long period.

Canadian Small Stocks

Equity securities of small-cap companies based in Canada, often characterized by higher volatility and growth potential than larger firms.

Risky

Involves a high degree of uncertainty and potential for loss in relation to an investment or decision.

Average Return

The simple mathematical average of a series of returns generated over a period of time.