During the 2008-2009 Recession,the Average P/E Ratio of Firms in the U.S.stock

Multiple Choice

During the 2008-2009 recession,the average P/E ratio of firms in the U.S.stock market reached an extraordinarily high level because ________.

A) investors believed short-term growth prospects for U.S.firms were extraordinarily good at that time
B) stock prices generally boomed during the recession
C) earnings per share were unusually low during the recession
D) investors believed long-term growth prospects coming out of the recession were not very good