In the Context of Tracking the Performance of Specific Securities

Multiple Choice

In the context of tracking the performance of specific securities, a higher price-to-earnings (P/E) ratio means:

A) the earnings of investors could end in a financial crisis.
B) investors expect a dip in the market price of the shares of the concerned company.
C) investors expect a greater growth in earnings over time.
D) the concerned company has issued more shares of common stock.