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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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