• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Endnotes

1.Two extensive studies of stock performance over the long term establish the truth about PE ratio. A study by David Dremen included 1,200 stocks between 1968 and 1977. During that period, annual returns averaged 7.89% among the lowest PE stocks and only 0.33% among the highest PE stocks. A second study, conducted in 1977 by Sanjoy Basu, included 500 NYSE stocks; the Basu study confirmed Dremen's earlier findings.
2.Reuters, “Polaroid Files for Bankruptcy Protection,” October 12, 2001.



PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint