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Question
Which of the following statements concerning price to book value is true?a. There is an inverse relationship between price to book values and market prices.
b. It is calculated as the ratio of price to the book value of assets.
c. There is supporting evidence that stocks with low price to book values significantly outperform the market.
d. Price to book value ratios for many stocks range from 5.5 to 10.5.
Answer
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