1) The use of P/E ratios to select stocks suggests that

	a.	low P/E ratio stocks are overvalued
	b.	a stock should be purchased if it is selling near its historic high P/E
	c.	high P/E stocks should be purchased
	d.	a stock should be purchased if it is selling near its historic low P/E

2)

Use of P/E ratios will not produce superior investment results according to the

Answer

	a.	all forms of the efficient market hypothesis
	b.	semi-strong form of the efficient market hypothesis
	c.	weak form of the efficient market hypothesis
	d.	strong form of the efficient market hypothesis