Stocks A and B have the same PER of 14.3 times. Price Earning to Growth (PEG) A = 0.48 and PEG B = 0.28. The following can be concluded:
1. A has a higher earnings growth than B
2. Stock B has a higher probability of earning more return than A
3. Earning Growth A = 30% and B = 51%
4. Stock B is cheaper than stock A
5. Stock A will provide a higher ROE than B in the next 1 year
Select one:
O a. 1 and 3
O b. 1, 2, 3, 4, 5
O c. 2, 3 and 4
O d. 2 and 3
O e. 1, 2 and 3