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Which of the following is (are) the characteristics of growth stocks? I. Higher prices and higher risk. II. Higher price/earnings ratio but lower price/book ratio.

Which of the following is (are) the characteristics of growth stocks?

I. Higher prices and higher risk.

II. Higher price/earnings ratio but lower price/book ratio.

III. Higher beta.

IV. Higher alpha.

Multiple Choice

I and III only

II and III only

I, III and IV only

III only

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