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You are reading an equity research report on a sector with information as below. The analyst claims that Todhunter Int'l is undervalued because its P/E

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You are reading an equity research report on a sector with information as below. The analyst claims that Todhunter Int'l is undervalued because its P/E ratio is lower than the average P/E. The analyst's statement is: Company Name Trailing PE Expected GrowthStandard Deviation Coca-Cola Bottling 29.18 9.5% 20.6% Molson Inc. Ltd. A 43.65 15.5% 21.9% Anheuser-Busch 24.31 11.0% 22.9% Corby Distilleries Ltd. 16.24 7.5% 23.7% Chalone Wine Group 21.76 14.0% 24.1% 8.96 Andres Wines Ltd. 'A' 3.5% 24.7% 8.94 3.0% 25.7% Todhunter Int'l 10.07 11.5% 29.4% Brown-Forman 'B 23.02 10.0% 29.5% Coors (Adolph) 'B' 33 10.5% 31.4% PepsiCo, Inc. Coca-Cola 44.33 19.0% 35.5% 17.1% 39.6% 10.59 Boston Beer 'A 11.5% 44.396 25.19 Whitman Corp. 14.0% 45.8% 16,47 Mondavi (Robert) A 37.14 27.0% 51.3% Coca-Cola Enterprises Hansen Natural Corp 9.7 17.0% 62.5% Average 22.66 12.60% 33.30% O is true. is false, because Todhunter Int'l has lower expected growth compared to the peers. is false, because Todhunter Int'l has lower risk compared to the

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