is ist jsut me or does this seem backward attractive, statements, following, regarding, valuation

morebeans

First

Which of the following statements regarding the P/E to growth (PEG) valuation approach is least accurate? The P/E to growth (PEG) valuation approach assumes that:
A) there are no risk differences among stocks.
B) there is a linear relationship between price to earnings (P/E) and growth.
C) stocks with higher PEGs are more attractive than stocks with lower PEGs.

The answer is C, but it seems opposite to me, you wouldn't want to buy a stock with a peg of 6, many people consider pegs of 2 to be getting to be high priced(in general). It appears to me that the higher the peg the more multiples of growth it is, therefore it is getting more and more expensive.

Second, the text is similar, high P/E's are good, but in the real world, we want low (relative) P/Es because it indicates a good buy or a discounted stock (generally)

anyone have comments?