Which of the following arguments has been put forward as a criticism of using the PEG ratio as the basis of an investment strategy? Select one: a. The PEG ratio buys growth stocks without any consideration of their price. b. Stocks with a low PEG ratio are all large cap stocks. c. Stocks with a low PEG ratio have been shown to generate lower stock returns. d. Stocks with a low PEG ratio also have a positively skewed distribution of returns. e. Stocks with a low PEG ratio are shown to be riskier
Which of the following arguments has been put forward as a criticism of using the PEG ratio as the basis of an investment strategy? Select one: a. The PEG ratio buys growth stocks without any consideration of their price. b. Stocks with a low PEG ratio are all large cap stocks. c. Stocks with a low PEG ratio have been shown to generate lower stock returns. d. Stocks with a low PEG ratio also have a positively skewed distribution of returns. e. Stocks with a low PEG ratio are shown to be riskier
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 3MC: You have been hired at the investment firm of Bowers & Noon. One of its clients doesn’t understand...
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Which of the following arguments has been put forward as a criticism of using the PEG ratio as the basis of an investment strategy?
Select one:
a.
The PEG ratio buys growth stocks without any consideration of their price.
b.
Stocks with a low PEG ratio are all large cap stocks.
c.
Stocks with a low PEG ratio have been shown to generate lower stock returns.
d.
Stocks with a low PEG ratio also have a positively skewed distribution of returns.
e.
Stocks with a low PEG ratio are shown to be riskier.
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