1. What primarily distinguishes a “growth stock” from a “value stock”?
2. Which valuation metric adjusts the traditional price-to-earnings (P/E) ratio to account for growth expectations when comparing stocks?
3. Which of the following is most likely a characteristic investors look for when selecting growth stocks?
4. Why might growth stocks be more volatile than the overall market?
5. What type of investor strategy involves buying stocks expected to grow faster than the broader market?