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The use of P/E ratios to select stocks suggests that Answer a. low P/E ratio stocks are overvalued b. a stock should be purchased if

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

Answer

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

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