Question

Which of the following types of stocks would be attractive to value investors because of their...

Which of the following types of stocks would be attractive to value investors because of their high cash flow and relatively low valuations?

Group of answer choices:

large cap stocks

growth stocks

speculative stocks

value stocks

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Answer #1

VALUE STOCKS are those stocks which are currently trading below their intrinsic valuation and these stocks are attractive to the value investor because they have a very high cash flow and relatively low valuation so Value stock will be offering them with the price discrepancy to maximize upon the rate of return.

All the other options are false because large cap stocks are not always undervalued or growth and speculative stock always having a higher valuation.

Correct answer will be option (D) value stocks

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