Firms with Higher Expected Growth Rates Tend to Have P/E

question 60

Multiple Choice

Firms with higher expected growth rates tend to have P/E ratios that are ________ the P/E ratios of firms with lower expected growth rates.

• A)higher than
• B)equal to
• C)lower than
• D)There is not necessarily any link between risk and P/E ratios

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Definitions:

Social Cohesion

The bonds that bring people together in a society, facilitating co-operation and harmony among members of the community.

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, and cohesive group formation.

Positive Bonds

Connections between individuals that are characterized by positive feelings, such as trust, affection, and mutual respect.

Affection

is a gentle feeling of fondness or liking toward someone or something, reflecting a form of emotional warmth or attachment.