A High P/E Ratio Results When the Market Believes the Firm's

question 86

True/False

A high P/E ratio results when the market believes the firm's earnings are risky.

---

Definitions:

Ionization

The method through which an atom or molecule obtains a positive or negative charge by the addition or removal of electrons.

Substance

material with particular physical characteristics, an important concept in chemistry and physics.

Nuclear Medicine

A medical specialty involving the application of radioactive substances in the diagnosis and treatment of diseases.

Radiopaque Substance

A substance that does not allow X-rays to pass through and appears white or light on an X-ray film, used in medical imaging to highlight structures.