A growth equity portfolio and a value portfolio might be characterized:
A)each by their P/E relative to the index P/E; high P/E for growth and lower for value.
B)as earning a high rate of return for a growth security and a low rate of return for value security irrespective of risk.
C)low unsystematic risk and high systematic risk respectively.
D)moderate systematic risk and zero systematic risk respectively.
E)None of the above.

Question

Quizplus · Accepted Answer

Growth equity portfolios typically have a high P/E ratio compared to the index, while value portfolios have a lower P/E ratio.

A Growth Equity Portfolio and a Value Portfolio Might Be