A Growth Stock Portfolio and a Value Portfolio Might Be

question 26

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 the above.

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