Why Would Investors Intentionally Choose Stocks with High P/E Ratios

question 178

Multiple Choice

Why would investors intentionally choose stocks with high P/E ratios?

• A) They expect these stocks' earnings to grow quickly.
• B) These stocks typically have lower prices.
• C) These stocks are traded on lower commissions.
• D) They expect these stocks to be less risky.

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Definitions:

Physiological Factors

Aspects related to the functioning of organs and biological systems within an organism that influence its physical and mental health and behavior.

Television

An electronic device that receives broadcast signals and displays them as visual images, offering entertainment, news, and information content to viewers.

Bisexual

A sexual orientation describing individuals who are attracted to both males and females.

Heterosexual

Referring to people who are sexually aroused by, and interested in forming romantic relationships with, people of the other gender.