A High P/E Ratio May Be an Indication That a Share

question 5

True/False

A high P/E ratio may be an indication that a share is overpriced.

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Definitions:

Confidence Index

An indicator designed to measure confidence or sentiment among investors or consumers, often through surveys or economic indicators.

Bullish

It describes an investor's belief or market sentiment where the expectation is that a specific stock, asset, or market will experience an increase in value.

Bearish

A term used to describe the expectation that a particular security, market, or economy will experience a decline in value.

TRIN

The TRIN, or Trading Index, measures market breadth by dividing the advance/decline ratio by the advance/decline volume ratio.