According to Peter Lynch,a Rough Rule of Thumb for Security

question 55

Multiple Choice

According to Peter Lynch,a rough rule of thumb for security analysis is that

• A)the growth rate should be equal to the plowback rate.
• B)the growth rate should be equal to the dividend payout rate.
• C)the growth rate should be low for emerging industries.
• D)the growth rate should be equal to the P/E ratio.
• E)none of the above.

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Definitions:

Excitability

The ability of a cell or tissue to respond to a stimulus, particularly noticed in nerve and muscle cells.

Extensibility

The capability of muscle tissue to be stretched or extended without being damaged.

Contractility

The capability of muscle tissue to contract or shorten, generating force and movement.

Secretion

The process by which substances are produced and discharged from a cell, gland, or organ for a particular function in the organism or for excretion.