Compare the price/earnings ratios for the two industries to each other and to the S&P 500 composite ratio. How do the ratios refl ect the life cycle stages of the industries?

Look at the one-year, three-year, and fi ve-year industry total returns. Are the returns consistent with what you know about fi rm life cycles? To what extent do they refl ect the general state of the economy during each period?

LO.1