Recover the cost of your investment
Question:
A firm has a stock price of $55 per share and a P/E ratio of 75.If you buy the stock at this P/E and earnings fail to grow at all, how long should you expect it to take to just recover the cost of your investment?
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Does the mutual fund manager; have had superior stock selection ability; have had superior asset allocation ability;
If you buy the stock at this P/E and earnings fail to grow at all, how long should you expect it to take to just recover the cost of your investment?
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