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

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.
E) none of the above.