Multiple Choice
Basu (1977, 1983) found that firms with high P/E ratios
A) earned higher average returns than firms with low P/E ratios.
B) earned the same average returns as firms with low P/E ratios.
C) earned lower average returns than firms with low P/E ratios.
D) had higher dividend yields than firms with low P/E ratios.
Correct Answer:
Verified
Correct Answer:
Verified
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