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Laura is considering two investments: Stock A and B. Both stocks have a P/E ratio of 19. Stock A has an expected growth of 13%.
Laura is considering two investments: Stock A and B. Both stocks have a P/E ratio of 19. Stock A has an expected growth of 13%. Which is the better stock and why? Stock B is better because it is expected to grow at a faster rate and therefore cheaper than Stock A Stock A is better because it is expected to grow at a slower and therefore will be less risky than Stock B. Since the P/E ratios are the same. Laura would be indifferent between the two stocks. There is not enough information provided
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