Examlex
Which of the following statements is true?
Price-to-earnings Ratios
A valuation ratio of a company's current share price relative to its per-share earnings, used to evaluate if a stock is over or undervalued.
Price-to-book Ratios
A valuation metric comparing a company's stock price to its book value per share, helping investors assess if a stock is undervalued or overvalued.
Peter Lynch
An American investor, mutual fund manager, and philanthropist known for his tenure at Fidelity Investments where he achieved strong annual returns.
Efficient Markets
The hypothesis that financial markets are "informationally efficient," meaning that the prices of traded assets already reflect all publicly available information.
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