Growth stocks usually exhibit ________ price-to-book ratios and ________ price-to-earnings ratios.
A) low; low
B) low; high
C) high; low
D) high; high

Question

Quizplus · Accepted Answer

Growth stocks typically exhibit high price-to-book ratios and high price-to-earnings ratios because investors are willing to pay more for them in anticipation of higher growth in revenue and earnings in the future.

Growth Stocks Usually Exhibit ________ Price-To-Book Ratios and ________ Price-To-Earnings

Growth Stocks Usually Exhibit Price-To-Book Ratios and Price-To-Earnings