In 2001, the P/E Ratio

question 56

Multiple Choice

In 2001, the P/E ratio:

• A) led to a discussion of "under-exuberance."
• B) was inverted.
• C) peaked at over 40.
• D) equaled the mean P/E ratio.
• E) began to rise sharply.

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Definitions:

Transitive Preferences

A principle in which if an individual prefers option A over B, and B over C, then they also prefer A over C.

Preferred

Indicating a greater liking for one alternative over another or others.

Marginal Rate

The rate at which a change is made from one level to another, often used in the context of taxes or interest rates.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent.