The Price-Earnings Ratio Measures

question 50

Multiple Choice

The price-earnings ratio measures

• A) the ratio of the market price of each share to the earnings per share.
• B) the ratio of the market price of each share to the total profit for the year.
• C) the ratio of the sales price to the profit.
• D) cash flow per share.

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Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Social Learning Theory

A theory of learning that posits people can learn new behaviors and norms through observing, imitating, and being reinforced by others.

Stress Inoculation Training

A cognitive-behavioral therapy technique teaching individuals to cope with stress by preparing them in advance to handle stressful situations effectively.