Multiple Choice
What does a high price/earnings ratio indicate?
A) Either the stock is undervalued or people have become more optimistic about the corporation's prospects.
B) Either the stock is overvalued or people have become more optimistic about the corporation's prospects.
C) Either the stock is overvalued or people have become less optimistic about the corporation's prospects.
D) Either the stock is undervalued or people have become less optimistic about the corporation's prospects.
Correct Answer:
Verified
Correct Answer:
Verified
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