Common Stocks: Analysis and Strategy
5. When valuing a speculative-growth stock, be sure to: a. Divide all valuations in half. b. Use P/E ratio as your primary yardstick. c. Compare the stock's valuations to those of its peers. C is Correct. It's always a good idea to compare a stock's valuations to those of similar stocks, but it's especially important for speculative-growth stocks. ................
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