Value Funds Seek Stocks

question 9

Multiple Choice

Value funds seek stocks
I.with low dividend yields.
II.with potential for growth.
III.with low P/E ratios.
IV.of newly discovered firms.

• A)I and III only
• B)II and III only
• C)II, III and IV only
• D)I, II, III and IV

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Definitions:

Median voter theorem

A theory suggesting that the outcome of a majority rule voting system will represent the preferences of the median voter.

Majority rule

A decision-making process where the option that receives more than half of the votes wins.

Arrow's Impossibility Theorem

A theory stating that no rank-order voting system can meet a set of reasonable fairness criteria simultaneously.

Difficulties

Challenges or situations that require effort to overcome.