Question 29 (1 point) Why might a firm have a high P/E ratio? 1) it is in a growth industry 2) The company is overpriced O 3) Investor confidence is high O 4) All of the above Question 25 (1 point) Which of the four main groups of mutual funds is considered to be the lowest risk? O a) Cash and cash equivalent funds b) Equity funds Oc) Balanced funds d) Fixed income funds Question 20 (1 point) What is the likely classification of shares in a luxury clothing chain? a) Cyclical b) Defensive c) Counter-cyclical O d) Speculative Question 30 (1 point) Amazon had a P/E ratio of 176. Royal Bank has a P/E ratio of 10. Is Amazon a better investment? a) Yes, it will continue to grow faster than Royal Bank. Ob) No, the market is over paying for Amazon c) No, Royal Bank is being undervalued by the market. O d) Yes but only if its expected growth rate turns out to be higher than what the market is forecasting