Question) You are valuing Macquarie Bank using relative valuation and found that its Price/Sales is 4.4. The average Price/Sales of peer firms is equal to 1.8. All else being equal, what can you conclude about this stock? A. Macquarie Bank is undervalued B. We cannot draw conclusions about this stock based on this relative valuation ratio C. Macquarie Bank is overvalued D. The difference in Price/Sales (4.4 vs. 1.8) could be explained by differences in risk