A Company's Price-To-Earnings (P/E) Ratio Reflects the Market's Perception of Future

Multiple Choice

A company's price-to-earnings (P/E) ratio reflects the market's perception of future growth prospects and risk.What does a high P/E ratio indicate with respect to each of those factors? $\begin{array}{ll}\text { Future }\\\text { Growth} & \text { Risk }\\\text { A) High } & \text { High } \\\text { B) High } & \text { Low } \\\text { C) Low } & \text { High } \\\text { D) Low } & \text { High }\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D