The Use of P/E Ratios to Select Stocks Suggests That

question 28

Multiple Choice

The use of P/E ratios to select stocks suggests that

• A)high P/E stocks should be purchased
• B)low P/E ratio stocks are overvalued
• C)a stock should be purchased if it is selling near its historic low P/E
• D)a stock should be purchased if it is selling near its historic high P/E

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