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Which of the Following Statements About Investment Style Is FALSE

Question 54

Multiple Choice

Which of the following statements about investment style is FALSE?


A) Growth stocks generally have smaller capitalizations than value stocks.
B) Value stocks have P/E and P/B ratios significantly lower than those of growth stocks.
C) Value stocks dividend yields are much higher than those of growth stocks.
D) Growth and levels of earnings is higher in growth stocks.
E) Value stocks have a higher risk premium.

Correct Answer:

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