The P/E Ratio Is a Multiple of Earnings That Investors

Multiple Choice

The P/E ratio is a multiple of earnings that investors pay for a stock. The P/E is __________ related to growth, __________ related to the discount rate, and __________ related to the stock's risk.

A) positively; positively; negatively.
B) negatively; positively; positively.
C) positively; negatively; negatively.
D) negatively; negatively; positively.