A High Price-Earnings Ratio for a Stock Indicates That Either

question 14

Multiple Choice

A high price-earnings ratio for a stock indicates that either the stock is

• A)undervalued or people are relatively optimistic about the corporation's prospects.
• B)overvalued or people are relatively optimistic about the corporation's prospects.
• C)overvalued or people are relatively pessimistic about the corporation's prospects.
• D)undervalued or people are relatively pessimistic about the corporation's prospects.

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Definitions:

Bone Density

The measurement of the amount of mineral matter per square centimeter of bones, used as an indicator of strength and risk for osteoporosis.

Deep Sleep Disorders

A category of sleep disorders that affect the ability to achieve or maintain deep, restorative sleep stages.

Sleep Terrors

Frightening, dream-like experiences that occur during the deepest stage of NREM sleep; nightmares, in contrast, occur during REM sleep.

Sleepwalking

A sleep disorder causing people to get up and walk around or perform other complex behaviors while in a state of sleep.