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Which of the following is the possible reason for the firms P/E ratio being too high ? Group of answer choices A. The firms return

Which of the following is the possible reason for the firms P/E ratio being too high?

Group of answer choices

A. The firms return on investment is much larger than its required return on the stock.

B. Investors are so optimistic for the firms future profits that its stock price has recently gone up dramatically.

C. All else being equal, the firm has greater systematic risk.

D. Both (A) and (B) are possible reasons for the P/E ratio being too high.

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