Which of the following stocks would be considered a ``value" stock given the adjacent information? Group...
Which of the following stocks would be considered a ``value" stock given the adjacent information?
Group of answer choices
Stock IBQ; prior-year return=20\%, book-to-market ratio = 1
Stock UVW; prior-year return=20%, book-to-market ratio = 0.5
Stock ABC; prior-year return=5%, book-to-market ratio = 2
Stock XYZ; prior-year return=5%, book-to-market ratio = 1
Homework Answers
Value stocks are characterized by lower growth rates, lower stock returns and lower market-to-book ratios.
Market-to-book ratio = 1 / book-to-market ratio.
Thus, a lower market-to-book ratios means a higher book-to-market ratio.
Stock ABC is a value stock as it has a low stock return, and a higher book-to-market ratio.
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Which of the following stocks would be considered a ``value"
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