FIN-650 Module 2 DQ 1

FIN-650 Module 2 DQ 1

Managerial Finance – Understanding Financial Statements

Grand Canyon University

Your stockbroker suggests you concentrate your portfolio on stocks with low P/E ratios. She explains that these firms are likely to be out of favor with investors because they have a low price relative to their current earnings. Is this necessarily a good investment practice? Why or why not?

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