If a stock has a much higher than normal P/E ratio, investors probably expectA. rapid growth in earnings.B. a declining stock priceOC. slow growth in earnings.O D. large increases in the price of the stock.

PE ratio is the ratio of the stock price and the earnings per share of a stock

If a stock has a much higher than normal P/E ratio, investors probably expect ... O A. rapid growth in earnings. O B. a declining stock price OC. slow growth in earnings. O D. large increases in the price of the stock.

If a stock has a much higher than normal P/E ratio, investors probably expect ... O A. rapid growth in earnings. O B. a declining stock price OC. slow growth in earnings. O D. large increases in the price of the stock.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If a stock has a much higher than normal P/E ratio, investors probably expect
A. rapid growth in earnings.
B. a declining stock price
OC. slow growth in earnings.
O D. large increases in the price of the stock.

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