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Posted on Jun 05, 2024

1) High P/E ratios can be expected when investors expect A) a high rate of growth in earnings. B) low earnings, relative to market prices.

1) High P/E ratios can be expected when investors expect

A) a high rate of growth in earnings.

B) low earnings, relative to market prices.

C) high interest rates.

D) a bear market.

Answer:A

I know the answer is A. But why is it correct compared to the other answers. Thank you so much!

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