Findings by Basu That Stocks with High P/E Ratios Tended

question 49

True/False

Findings by Basu that stocks with high P/E ratios tended to stocks with low P/E ratios challenge the efficacy of the CAPM.

---

Definitions:

Internal

Relating to or situated within the inner part, happening or existing within an organization or entity.

External

Factors, influences, or conditions that exist outside an organization which can impact its operations and strategies.

Personal Predispositions

Innate tendencies, characteristics, or inclinations that influence an individual's behavior or attitudes.

Affective Events Theory

A theory that proposes that workplace events cause emotional reactions on the part of employees, which then influence workplace attitudes and behaviors.