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Business, 18.02.2020 23:30 econsta3

Each year, Vincent buys the poorest performing major stocks on an exchange and holds them for a year. Why could this be a good strategy? Select the best answer from the choices provided.

A. Stocks that perform poorly one year typically perform better the next year.

B. Stocks that perform poorly have falling prices and, hence, high P/E ratios.

C. Stocks that perform poorly may be undervalued and have prices lower than the companies' performances indicate.

D. Stocks that perform poorly tend to pay larger dividends next year.

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