Which one of the following statements describes an investment strategy that may lead to profitable results based on current research findings?
A)selling stocks as soon as positive earnings surprises are announced
B)selling stocks on Mondays only
C)selling small-company stocks in December and repurchasing them in February
D)selling stocks on the 25th of the month and repurchasing them on the 5th of the following month
E)buying stocks with relatively low P/E ratios

Question

Quizplus · Accepted Answer

Buying stocks with relatively low P/E ratios has been shown to be a profitable investment strategy based on research findings. The other options do not have any research support for being profitable investment strategies.

Which One of the Following Statements Describes an Investment Strategy