Which of the Following Is True

question 672

Multiple Choice

Which of the following is true?

• A) The P/E ratio provides information on the price of a stock relative to its current earnings.
• B) The P/E ratio provides information on the price of a stock relative to its future earnings.
• C) The P/E ratio provides information on the price of a stock relative to its past earnings.
• D) The P/E ratio average from 1950-2008 was 26.

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Definitions:

Conscious Attention

The deliberate focus of mental effort and awareness on specific stimuli or tasks in one's environment.

Automatization

The process of making actions or processes operate automatically.

Human Preference

The tendencies or inclinations humans have towards certain choices, behaviors, or objects over others, often influenced by a wide range of biological, psychological, and social factors.

Hedonism

The human preference for pleasure over pain.