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In General,if Investors Regard a Company as Being Relatively Risky

question 55

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In general,if investors regard a company as being relatively risky and/or having relatively poor growth prospects,then it will have relatively high P/E and M/B ratios.


Definitions:

Leading Question

A question that suggests the answer or contains the information the examiner is looking to have confirmed, typically disallowed on direct examination.

Intersection

A point at which two or more roads cross or intersect, or the act of intersecting.

Brakes

Mechanical devices or systems in vehicles designed to decrease or stop their motion by applying resistance.

Hypothetical Question

A question based on assumed or imagined circumstances, often used in legal contexts to explore possibilities or test theories.

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