Which of the following is true?
A) Historically, high P/E or growth stocks have outperformed low P/E or value stocks.
B) Historically, low P/E or value stocks have outperformed high P/E or growth stocks.
C) After adjusting for risk, high P/E or growth stocks and low P/E or value stocks have performed about the same over time.
D) the P/E effect is limited to U.S. stocks.
Answer: B
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