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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Definitions:

Development

The process of growth, progress, or improvement in various contexts such as economic, social, personal, or technological areas.

Cost-Per-Dollar-Raised Ratio

A metric used in fundraising and nonprofit management that measures the cost of raising one dollar of donations.

Fund-Raising Effort

Initiatives or activities aimed at collecting funds for supporting a cause, project, or organization, often involving appeals to potential donors.

Attribution Theory

A theory that focuses on how individuals interpret events and how this relates to their thinking and behavior.