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A Value Company Is Defined as One That

Question 24

Multiple Choice

A value company is defined as one that:


A) tends to have a lower average return than a growth company.
B) tends to have higher average return than a growth company.
C) has a high ratio of book equity to market equity.
D) tends to have a lower average return than a growth company and tends to have higher average return than a growth company.
E) tends to have a lower average return than a growth company and has a high ratio of book equity to market equity.

Correct Answer:

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