The "normal" range of price-earnings ratios for the S&P 500 Index is
A) between 2 and 10.
B) between 5 and 15.
C) less than 8.
D) between 12 and 25.
E) greater than 20.

Question

Quizplus · Accepted Answer

The "normal" range of price-earnings ratios for the S&P 500 Index historically falls between 12 and 25. This range can vary depending on market conditions, economic factors, and investor sentiment, but it is a general guideline for what is considered a typical P/E ratio range for companies within the index.

The "Normal" Range of Price-Earnings Ratios for the S&P 500