Which of the Following Statements Regarding P/E Ratios Is True

Multiple Choice

Which of the following statements regarding P/E ratios is true?

A) Generally,the riskier the stock,the higher the P/E ratio.
B) In recent years,the small capitalization stocks had the highest P/E ratios.
C) As interest rates increase,P/E ratios are expected to decline.
D) Higher growth prospects often lead to lower P/E ratios.