(3) Which of the following articles is incorrect? a. In the growth strategy, the investor does...
(3) Which of the following articles is incorrect?
a. In the growth strategy, the investor does not focus on the stock price
B. The investor in the growth strategy gives less importance to the valuation of the stock
T. An investor in value strategy favors stocks that have a rapid growth of EPS
C. The investor in the growth strategy prefers companies that lock in profits
Homework Answers
A is incorrect.
An investor in the growth strategy focuses less on stock price but does not ignore it altogether. There are other parameters related to stocks that play more importance in the growth strategy and these are:-
1) Strong historical earnings growth
2) Strong future earning potential
3) Strong profit margins
4) Strong return on equity
5) Strong stock performance
Add Answer to:
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