If a Firm's Price-Earnings Ratio Is Relatively Low, Then It

question 484

Multiple Choice

If a firm's price-earnings ratio is relatively low, then it might be an indication that

• A)the demand for the stock is relatively high.
• B)the supply of the stock is relatively low.
• C)people expect the firm's earnings to rise.
• D)people expect the firm's earnings to fall.

---

Definitions:

Vision

The ability to interpret the surrounding environment using light in the visible spectrum reflected by the objects in the environment.

Opponent Process Theory

A psychological and neurological model that explains how the perception of colors is controlled by the operation of opposing neural systems.

Trichromatic

Describes the feature of having three colors, in psychology, it specifically refers to the trichromatic theory of color vision.

Retinex Theories

A set of theories proposing how the human eye and brain perceive colors consistently under different lighting conditions.