Value funds specialize in securities of companies that are

Question

Quizplus · Accepted Answer

Value funds specialize in investing in underpriced securities of established companies that have the potential for growth. This distinguishes them from growth funds, which invest in rapidly growing companies, including younger or smaller ones. Value funds seek out stocks that the market may have overlooked, undervalued or with a lower price-to-earnings (P/E) ratio compared to their industry peers. Therefore, the answer choice B, underpriced, is the best option.

Value Funds Specialize in Securities of Companies That Are