Firms with Low P/E Ratios That Are Often Neglected by Major

question 84

Multiple Choice

Firms with low P/E ratios that are often neglected by major investors seem to provide:

• A)an inferior risk-adjusted return.
• B)a superior risk-adjusted return.
• C)a superior return, not adjusted for risk, though.
• D)No return

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Definitions:

Category

A group or category of individuals or objects that are considered together because of similar attributes they possess.

Fundamental Attribution Error

The tendency for observers to overemphasize dispositional or personality-based explanations for behaviors observed in others while underemphasizing situational explanations.

Success

The achievement of a set goal, objective, or desired outcome.

Embezzlement

The act of dishonestly withholding assets for the purpose of conversion of such assets, by one or more individuals to whom the assets were entrusted.