Firms with low P/E ratios that are often neglected by major investors seem to provide:
A)an inferior risk-adjusted return.
B)a superior risk-adjusted return.
C)a superior return, not adjusted for risk, though.
D)No return

Question

Quizplus · Accepted Answer

Firms with low P/E ratios are often undervalued and neglected by major investors, which can provide an opportunity for savvy investors to buy in at a lower cost. These firms may have strong fundamentals and growth potential, which can lead to a superior risk-adjusted return compared to higher priced stocks.

Firms with Low P/E Ratios That Are Often Neglected by Major