(5 points) An investor is considering the following stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividends with little increase in earnings, and has a PE ratio of 11. Stock Y has a market capitalization of $62 billion, but does not currently pay a dividends, and has a PE ratio of 39 . Stock Z is a housing company and has a market capitalization of $800 million and aPPE of 18. a. How would you classify these stocks according to their market cap? Which one would be large-cap, which one mid-cap and small-cap? b. Which of these stocks would you classify as a growth stock? Why? c. Which of these stocks would you classify

6. (5 points) An investor is considering the following stocks. Stock X has a market capitalization of $7 billion, pays a relatively high dividends with little increase in earnings, and has a PE ratio of 11. Stock Y has a market capitalization of $62 billion, but does not currently pay a dividends, and has a PE ratio of 39 . Stock Z is a housing company and has a market capitalization of $800 million and a PE of 18 . a. How would you classify these stocks according to their market cap? Which one would be large-cap, which one mid-cap and small-cap? b. Which of these stocks would you classify as a growth stock? Why? c. Which of these stocks would you classify as an income stock and why? d. Which one would an aggressive (risk-taking) investor prefer? Why