1. Primary screening criteria for growth stocks often specifiy __________.
A. a maximum absolute level of historical earnings per share growth
B. a growth rate in earnings that is below the industry average
C. a minimum absolute level of historical earnings per share growth
D. a profit margin above the industry norm
2. Value stock investors favor companies that sell at attractive valuations when value is measured in terms of a P/E ratio that is __________.
A. equal to the market average
B. above the market average
C. below the firm’s historical average ratio
D. extremely volatile
3. Benjamin Graham believed that the enterprising investor should look for value stocks _________.
A. with a past stream of dividends that display interrupted payment
B. with positive earnings for each of the past five years
C. with extreme volatility in price over the past six months
D. none of the above