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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.

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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