A High P/E Ratio May Be an Indication That a Stock

question 23

True/False

A high P/E ratio may be an indication that a stock is overpriced.

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Definitions:

Capacitive VARs

Reactive power measured in Volt-Ampere Reactive (VAR) generated by capacitive loads, which can be used for power factor correction in electrical systems.

Power Factor

An indication of the efficiency with which electrical power is turned into actual work, measured on a scale from 0 to 1, where a value of 1 signifies the highest possible efficiency.

RLC Series Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series.

Voltage Drop

The reduction in voltage across a component or conductor as electric current flows through it.