One of your colleagues asks you the following question:
“Someone told me that I should look at the price/earnings ratios published in The Globe and Mail to help me identify shares that are less expensive relative to others. I’m not sure what the P/E ratio is, how it would help me to identify less expensive shares, and whether I should be looking for shares with a higher or lower P/E ratio. Can you explain this to me?”

Required

Respond to your colleague’s question.