Which of the following arguments has been put forward as a criticism of using the PEG ratio as the basis of an investment strategy? Select one: a. The PEG ratio buys growth stocks without any consideration of their price. b. Stocks with a low PEG ratio are all large cap stocks. c. Stocks with a low PEG ratio have been shown to generate lower stock returns. d. Stocks with a low PEG ratio also have a positively skewed distribution of returns. e. Stocks with a low PEG ratio are shown to be riskier

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Which of the following arguments has been put forward as a criticism of using the PEG ratio as the basis of an investment strategy?

Select one:

a.

The PEG ratio buys growth stocks without any consideration of their price.

b.

Stocks with a low PEG ratio are all large cap stocks.

c.

Stocks with a low PEG ratio have been shown to generate lower stock returns.

d.

Stocks with a low PEG ratio also have a positively skewed distribution of returns.

e.

Stocks with a low PEG ratio are shown to be riskier.

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