In general,if investors believe that a company is relatively risky and/or has relatively poor growth prospects,then the company will have relatively high P/E,M/B,and EV/EBITDA ratios.

Question

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If investors believe that a company is risky or has poor growth prospects, they would typically demand a higher return on their investment, resulting in a lower P/E, M/B, and EV/EBITDA ratio.

In General,if Investors Believe That a Company Is Relatively Risky