n NISM Certifications
XXI NISM Series XXI-A
Medium

To identify value stocks, the following primary criteria (screens) may be used:

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Low Price-to-Earnings ratio

  2. B

    Low PEG ratio

  3. C

    Low Price-to-Book ratio

  4. All of the above

    Correct answer

Why this is the answer

Value stocks are characterized by low valuation ratios across multiple metrics.

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