11. High PE stocks have historically delivered lower annual returns than low PE

Question

11. High PE stocks have historically delivered lower annual returns than low PE stocks. If you area growth investor, which of the following justifications may you offer for still making a bet stocks? on high PE a. High PE stocks are usually less risky than low PE stocks. High PE stocks have lower transactions costs than low PE stocks. c. There are periods where high PE stocks do better than low PE stocks, and you are good at timing these periods d. High PE stocks generally pay higher dividends than low PE stocks.

Explanation / Answer

Ans C) There are periods where high PE stocks do better than low PE stocks, and you are good at timing these periods

if the history is a good guide, it looks like you have to be a market timer to win the investing in high PE stocks

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.