Studies of the Relationship Between P/E Ratios and Stock Returns

Studies of the relationship between P/E ratios and stock returns have found that

A) Low P/E stocks of large cap stocks outperformed low P/E stocks of small cap stocks.
B) Low P/E stocks of small cap stocks outperformed high P/E stocks of large cap stocks.
C) High P/E stocks of large cap stocks outperformed low P/E stocks of small cap stocks.
D) High P/E stocks of large cap stocks outperformed high P/E stocks of small cap stocks.
E) none of the above.

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