Basu Found That Firms with High P/E Ratios ________

Multiple Choice

Basu 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