What is the main reason why value stocks are often priced lower than their growth counterparts? Option: They carry a higher risk of bankruptcy, They are primarily traded on smaller exchanges, They are less popular among investors, They have lower marketing budgets

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What is the main reason why value stocks are often priced lower than their growth counterparts?

They carry a higher risk of bankruptcy

They are primarily traded on smaller exchanges

They are less popular among investors

They have lower marketing budgets

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What is the primary characteristic of value stocks?

"They are expected to grow faster than their peers."

"They do not pay dividends, reinvesting profits for growth."

"They have high dividend yields and low price-to-book ratios."

"They are favored for short-term holdings due to momentum and volatility."

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What is a significant risk associated with investing in growth stocks?

"They are primarily issued by established companies"

"They offer limited potential for capital appreciation"

"They are highly susceptible to market fluctuations"

"They tend to have low trading volumes"

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What characteristic distinguishes value stocks from growth stocks?

"Value stocks prioritize dividend payments over reinvestment"

"Value stocks typically have high price-to-earnings ratios"

"Value stocks are issued by companies with high growth potential"

"Value stocks are considered undervalued by the market"

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Which of the following is a risk associated with small-cap stocks due to their limited trading volume?

Lower expense ratios

Difficulty in selling shares quickly

High dividend payouts

Guaranteed returns

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Which of the following is a significant risk associated with small-cap stocks?

Guaranteed returns

Immunity to market fluctuations

Low expense ratios

High volatility