Basu (1977,1983)found That Firms with Low P/E Ratios

Multiple Choice

Basu (1977,1983) found that firms with low P/E ratios

A) earned higher average returns than firms with high P/E ratios
B) earned the same average returns as firms with high P/E ratios
C) earned lower average returns than firms with high P/E ratios
D) had higher dividend yields that firms with high P/E ratios
E) none of these.