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What Does a Price/earnings Ratio Measure? What Does a Price/earnings

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What does a price/earnings ratio measure? What does a price/earnings ratio of 33.4 imply?


Definitions:

Arousal

The physiological and psychological state of being awake, alert, and engaged, often as a response to stimuli.

Activation Theory

A theory suggesting that performance is best under conditions of optimal arousal, rather than too high or too low.

Theoretical

Related to or based on theory; not practical or applied, but abstract and speculative.

Practical

Concerned with the actual doing or use of something rather than with theory and ideas.

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