The correct answer is D. B to M portfolio.
A book-to-market ratio (B/M ratio) is a valuation ratio that compares a company’s market value to its book value. The B/M ratio is calculated by dividing a company’s market capitalization by its book value per share. A high B/M ratio indicates that a company is undervalued, while a low B/M ratio indicates that a company is overvalued.
A B to M portfolio is a portfolio of stocks that have high B/M ratios. These stocks are often considered to be undervalued, and they may offer the potential for capital appreciation. However, it is important to note that B/M ratios are only one factor to consider when evaluating stocks. Other factors, such as a company’s financial health and growth prospects, should also be considered.
Here is a brief explanation of each option:
- A. H portfolio: This is not a standard term in finance. It could refer to a portfolio of stocks with high price-to-earnings ratios, but this would not be a good choice for a portfolio with the highest book-to-market ratios.
- B. L portfolio: This is also not a standard term in finance. It could refer to a portfolio of stocks with low price-to-earnings ratios, 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube