Other Things Equal,if The

question 39

Multiple Choice

Other things equal,if the:

• A)required rate of return increases,the P/E ratio will rise.
• B)risk premium increases,the P/E ratio will rise.
• C)risk-free rate rises,the P/E ratio will fall.
• D)dividend payout increases,the P/E ratio will fall.

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Definitions:

Biological Perspective

An approach in psychology focusing on the understanding of human behavior from a biological standpoint, examining genetic, neurological, and physiological processes.

Thoughts

Mental cognitive processes involving the organization and understanding of information, as well as the forming of beliefs and attitudes.

Fantasies

Imagined scenarios or sequences of events that are often improbable or impossible.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating actions and sensory information.