Companies a and B Are Both in the Same Industry

question 54

Multiple Choice

Companies A and B are both in the same industry and generally compete against each other in the marketplace.Stock A has a P/E ratio of 15 while Stock B's P/E is 21.Which of the following is not true about the relative positioning of Stock A and Stock B?

• A) Stock B has lower perceived risk.
• B) Investor's are willing to pay a higher price for shares in Company B.
• C) Company A business performance is probably not as strong as Company B performance.
• D) All of the statements are correct.

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Definitions:

Emotion

A complex psychological state involving an individual's subjective experience, physiological response, and expressive behavior.

Myelination

The process in which neurons are coated in a fatty substance, myelin, which contributes to faster neural communication.

Synaptic Pruning

The process by which synapses, neural connections that are seldom used, disappear.

White Matter

Myelinated brain tissue.