Several analysts and empiricists recommend investing in stocks with what kind of price to book value ratios?
A)low.
B)equal to one.
C)high.
D)equal to zero.

Question

Quizplus · Accepted Answer

Several studies have found that stocks with low price to book value ratios tend to outperform the market in the long run. This is because a low price to book value ratio may indicate that a stock is undervalued and has more potential for growth. On the other hand, stocks with high price to book value ratios may be overvalued and may not have as much growth potential. Therefore, investing in stocks with low price to book value ratios is generally recommended.

Several Analysts and Empiricists Recommend Investing in Stocks with What