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 25^th of the month and repurchasing them on the 5^th 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 current research findings. This is because low P/E ratios suggest that the stock may be undervalued and have potential for future growth. Selling stocks based on specific dates or events, as in choices A, B, C, and D, do not have any reliable research findings to support their effectiveness as profitable investment strategies.

Which One of the Following Statements Describes an Investment Strategy