Which of the Following Would Most Likely Affect the P/E

question 55

Multiple Choice

Which of the following would most likely affect the P/E ratio of the market in general?

• A)A significant change in government fiscal policy
• B)Declining earnings of the S&P 500 companies
• C)Investors' expectations about inflation changes and becomes either more positive or more negative
• D)All of the above could have a significant impact.

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Definitions:

Warranty Of Trade Usage

An implicit guarantee that a product or service conforms to the customary standards and practices in a particular industry or trade.

Fitness For A Particular Purpose

A warranty in sales law that goods will meet the specific request of the buyer.

Warranty Rights

Legal rights guaranteed to consumers, ensuring that products meet certain standards of quality and reliability.

Third Parties

Individuals or entities that are not directly involved in a legal agreement or transaction but may be affected by it or have an interest in its outcome.