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Which of the Following Is True

Question 672

Multiple Choice

Which of the following is true?


A) The P/E ratio provides information on the price of a stock relative to its current earnings.
B) The P/E ratio provides information on the price of a stock relative to its future earnings.
C) The P/E ratio provides information on the price of a stock relative to its past earnings.
D) The P/E ratio average from 1950-2008 was 26.

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