ST, UV and WX are listed entities operating in the same business sector. At 31 October 20X6, their PE ratios were reported as follows:

ST 16.2 

UV 12.7 

WX 8.4

Which ONE of the following statements about these PE ratios is correct? 

The PE ratios suggest that:

(a) ST is regarded by the market as the riskiest of the three entities. 

(b) ST has the highest earnings per share of the three entities.

(c) UV represents the safest investment because its PE lies approximately midway between the other two.

(d) WX’s share price may be relatively lower than that of ST and UV because of an adverse effect such as a profit warning.