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A Low Price-Earnings Ratio Indicates That Either the Stock Is

Question 99

Multiple Choice

A low price-earnings ratio indicates that either the stock is


A) undervalued or people are relatively optimistic about the corporation's prospects.
B) overvalued or people are relatively optimistic about the corporation's prospects.
C) overvalued or people are relatively pessimistic about the corporation's prospects.
D) undervalued or people are relatively pessimistic about the corporation's prospects.

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