An analyst uses a stock screener and selects the f

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An analyst uses a stock screener and selects the following metrics: a global equity index, P/E ratio lower than the median P/E ratio, and a price-book value ratio lower than the median price-book value ratio. The stocks so selected would be mostappropriate for portfolios of which type of investors?
A. Value investors.
B. Growth investors.
C. Market-oriented investors.

难度:⭐⭐⭐

题库:财会类考试,特许金融分析师(C,CFA一级

标签:equity,index,metrics

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2024-11-11 17:56:39

Ans:A.
Value investors look for relatively cheap stocks, so they often use relative valuation methods such as P/E and P/BV criteria.
Metrics such as low P/E and low price-book are aimed at selecting value companies; therefore the portfolio is most appropriate for value investors.
B is incorrect. Growth investors typically look for growing earnings, and some refine that further to accelerating growth in earning.
C is incorrect. Market-oriented investors look for securities in which they can make an excess return regardless of the style.

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