Investors Are Willing to Purchase Stocks Having High P/E Ratios

question 19

Multiple Choice

Investors are willing to purchase stocks having high P/E ratios because:

• A) they expect these shares to sell for a lower price.
• B) they expect these shares to offer higher dividend payments.
• C) these shares are accompanied by guaranteed earnings.
• D) they expect these shares to have greater growth opportunities.

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Definitions:

Facial Muscles

A group of skeletal muscles under the facial skin that control facial expressions.

Facial Feedback

The theory that facial expressions can influence emotional experiences.

Primary Emotional Processing

The initial, automatic emotional response to a stimulus before it is moderated by higher cognitive processes.

Internal Emotion Work

The process of managing and altering one's emotional experiences or expressions to meet social expectations or personal goals.