true or false ?

19. Companies A and B are competitors and operate in the same industry. Stock A has a higher P/E ratio than stock B. Which stock most likely is overvalued compared to the other? 20. Stock A has a Beta of 1.5. Stock Bhas a Beta of.9. Which stock should have the higher risk premium? 21. Your grandfather invested $100 in large company stocks in 1940 and your grandmother invested $100 in small company stocks in 1940. If they have not withdrawn or added more money, whose account is worth the most today? A grandfather's B. grandmother's is the following headline from www.cnbc.com an example of Systematic or Ursstematic risk? Walmart adds Moosejaw to its website, defending itself further against Amazon A systematic 3.unsystematic 23. Which of the following event would be considered systematic? A. The Federal Reserve indicates that they may increase interest rates again before the end of the year. B. Boeing is sued by shareholders because of negligence related to 737 air disasters 24. What would be the effect of this news event: Apple sues Qualcomm for $23 billion." A. The overall market will likely decrease. B. Qualcomm stock will likely decrease. 25. A stock's HPR lies below the Security Market Line (SML). This means that: A. The stock's price is currently too high B. The stock's price is currently too low