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The Use of Price to Book Ratios to Select Stocks

Question 34

Multiple Choice

The use of price to book ratios to select stocks suggests that


A) high price to book stocks are undervalued
B) low price to book stocks are overvalued
C) a stock should be purchased if it is selling near its historic high price to book ratio
D) a stock should be purchased if it is selling near its historic low price to book ratio

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