What Does a High Price/earnings Ratio Indicate

question 208

Multiple Choice

What does a high price/earnings ratio indicate?

• A) Either the stock is undervalued or people have become more optimistic about the corporation's prospects.
• B) Either the stock is overvalued or people have become more optimistic about the corporation's prospects.
• C) Either the stock is overvalued or people have become less optimistic about the corporation's prospects.
• D) Either the stock is undervalued or people have become less optimistic about the corporation's prospects.

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Definitions:

Component

A part or element of a larger system that contributes to its functionality, such as hardware components in a computer or software components in an application.

IaaS

A type of cloud technology service that describes routers, switches, servers, virtual machines, load balancers, access points, storage, and any other infrastructure device that is provided through the online environment.

Disk Image Library

A collection or repository of disk images, which are exact copies of computer disks, used for backup, restoration, or emulation purposes.

Virtual Machines

Software emulations of physical computers that enable users to run multiple operating systems on a single physical hardware host.