Which of the following companies would be the most attractive investment to a very conservative investor?

Question

Quizplus · Accepted Answer

Company C, with a P/E ratio of 15, would be the most attractive investment to a very conservative investor because it indicates a potentially more stable and established company compared to those with negative or higher P/E ratios. Negative P/E ratios suggest the company is not currently profitable, which is riskier, and a very high P/E ratio can indicate overvaluation, also adding risk.

Which of the Following Companies Would Be the Most Attractive