Homework Answers
Answer: The third option is correct
Firms with high P/E ratios earned lower average returns than firms
with low P/E ratios because in case of high P/E the stock will
already be trading at higher price with respect to the earnings (so
the rise in price will be less).
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Firms with high P/E ratios earned higher average returns than firms with low P/E ratios earned...
Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E...
Firms with lower expected growth rates tend to have P/E ratios that are ___________ the P/E ratios of firms with higher expected growth rates. Multiple Choice a)equal to b)There is not necessarily any linkage between risk and P/E ratios. c)lower than d)higher than
With tradable permits, high polluters face a (the) ________cost of pollution reduction than low polluting firms...
With tradable permits, high polluters face a (the) ________cost of pollution reduction than low polluting firms and decrease emissions at a (the) _________than with reguation. a. same; lower b. lower; higher c. higher; same d. higher lower (side note: confirmed that lower higher is not the right answer. so it is either a, c, or d
14.a company whose stock is selling at a P/E ratio greater than the P/E ratio of...
14.a company whose stock is selling at a P/E ratio greater than the P/E ratio of a market index most likely has____ a. an anticipated earning growth rate which is less than that of the average firm b.less predictable earnings growth than that of the average firm. c.greater cyclicality of earnings growth than that of the average firm. d.a dividend yield which is less than that of the average firm. e. none of the above. 15.which of the fllowing combinations...
11. Fama and French (1991) and Reinganum (1988) found that firms with low market/book ratios had...
11. Fama and French (1991) and Reinganum (1988) found that firms with low market/book ratios had higher stock returns. This study provides evidence against __________ . A) Technical analysis B) Fundamental analysis C) Semi-strong form of market efficiency D) Strong form of market efficiency
Which of the following statements is most accurate? O a. Firms with low PB ratios are value firms and tend to outpe...
Which of the following statements is most accurate? O a. Firms with low PB ratios are value firms and tend to outperform high PB firms. O b. The biggest drawback of using PCF ratio is its inability to address operating efficiency. O c. Higher PEG ratios imply undervalued stocks. O d. PCF is a preferred relative measure compared to PE.
If firms do not clean up their pollution, the price will be _(low, the same, higher)...
If firms do not clean up their pollution, the price will be _(low, the same, higher) ______ than if there was no pollution Answer 1 and quantity will be _____(low, the same, higher)_____ than if there was no pollution.
true or false: firms with high market to book ratios are likely to have higher earnings going forward.
true or false: firms with high market to book ratios are likely to have higher earnings going forward.
Questions 33-36 please 33. Historically, small-firm stocks have earned higher returns than large-firm stocks. When viewed...
Questions 33-36 please
33. Historically, small-firm stocks have earned higher returns than large-firm stocks. When viewed in the context of an efficient market, this suggests that A. Small firms are better run than large firms B. Government subsidies available to small firms produce effects that are discernable in stock market conditions C. Small firms are risker than large firms D. Small firms are not being accurately represented in the data. E. None of the above 34. The holding period return...
Water surface location High water Low water electrode H electrode L Lower than the low water...
Water surface location High water Low water electrode H electrode L Lower than the low water level L c, d off a, b off c, d on a, b off Higher than the low water level L and lower than the high water level H c, d on a, b on Higher than the high water level H (1) If the water surface is higher than the low water level L and lower than the high water level H, derive...
Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies...
Dividend Payout Ratios in Russia tend to be higher than in the United States. This implies which of the following? Investors in Russia are more likely to believe in the Bird-In-the-Hand Theory since they do not trust Russian Accounting. Investors in the US do not believe in any dividend theory. Russian Investors are more like to follow the tax preference theory since Russia has lower taxes than the United States. No dividend theory is implied from this information.
Which of the following statements is most accurate? O a. Firms with low PB ratios are value firms and tend to outperform high PB firms. O b. The biggest drawback of using PCF ratio is its inability to address operating efficiency. O c. Higher PEG ratios imply undervalued stocks. O d. PCF is a preferred relative measure compared to PE.
Questions 33-36 please
33. Historically, small-firm stocks have earned higher returns than large-firm stocks. When viewed in the context of an efficient market, this suggests that A. Small firms are better run than large firms B. Government subsidies available to small firms produce effects that are discernable in stock market conditions C. Small firms are risker than large firms D. Small firms are not being accurately represented in the data. E. None of the above 34. The holding period return...
Water surface location High water Low water electrode H electrode L Lower than the low water level L c, d off a, b off c, d on a, b off Higher than the low water level L and lower than the high water level H c, d on a, b on Higher than the high water level H (1) If the water surface is higher than the low water level L and lower than the high water level H, derive...
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