According to Peter Lynch,a rough rule of thumb for security analysis is that
A)the growth rate should be equal to the plowback rate.
B)the growth rate should be equal to the dividend payout rate.
C)the growth rate should be low for emerging industries.
D)the growth rate should be equal to the P/E ratio.
E)none of the above.

Question

Quizplus · Accepted Answer

Peter Lynch's rule of thumb suggests that the growth rate should be approximately equal to the P/E ratio, known as the PEG ratio being around 1.

According to Peter Lynch,a Rough Rule of Thumb for Security