If a Share Has a Much Higher Than Normal P/E

question 10

Multiple Choice

If a share has a much higher than normal P/E ratio, investors probably expect [blank].

• A)slow growth in earnings
• B)rapid growth in earnings
• C)large increases in the price of the shares
• D)a declining shares price

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Definitions:

Ortolani Sign

A clinical sign used to detect hip dislocation or dysplasia in infants, involving a specific maneuver.

Phalen Test

A diagnostic test performed by flexing the wrist gently as far as possible, then holding this position to test for numbness or tingling in the fingers, used in diagnosing carpal tunnel syndrome.

Carpal Tunnel Syndrome

A condition characterized by numbness, tingling, and weakness in the hand and arm, caused by pressure on the median nerve in the wrist.

Dorsiflex

The action of pulling the toes or foot upwards towards the shin, decreasing the angle between the dorsum of the foot and the leg.