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Question 1 Stock A has an HPR of 16%. Stock B has an HPR of 13%. If both stocks have a fair return (k) of
Question 1
Stock A has an HPR of 16%. Stock B has an HPR of 13%. If both stocks have a fair return (k) of 14%, which stock should you buy?
A | ||
B | ||
Not enough information |
Question2
According to the Information in Table A, which of the following is the BEST response? Choose only ONE.
Table A | ||
P/E | PEG | |
AAPL | 20.13 | 1.14 |
BUD | 21.91 | 20.58 |
RFP | 2.58 | 12.39 |
IRBT | 44.65 | 2.48 |
AAPL appears to be the best value because it has the lowest PEG.
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BUD appears to be the best value because it has the highest PEG.
| ||
IRBT appears to be the best value because it has the highest P/E. | ||
RFP appears to be the best value because it has the lowest P/E.
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