A Stock That Has a Low Price/earnings Ratio and a Low

question 62

True/False

A stock that has a low price/earnings ratio and a low price/book value ratio is an indicator of a stock that is expected to have slow or negative growth in earnings and a low return on common stockholders' equity.

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Definitions:

Self-Handicapping

A strategy where people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Self-Fulfilling Prophecy

A belief or expectation that causes itself to become true due to positive feedback between belief and behavior.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate dispositional influences upon others' behaviors.

Self-Serving Bias

A cognitive bias where individuals attribute their successes to personal factors and their failures to external factors.