The ratios that are much higher than the market averages are generally associated with companies with fast-growing profits are called:

Question

Quizplus · Accepted Answer

Price-earnings ratios (P/E ratios) measure the current stock price of a company in relation to its earnings per share. When a P/E ratio is much higher than the market average, it suggests that investors have high expectations for the company's future earnings growth. This is often seen in companies with fast-growing profits, making A the best choice.

The Ratios That Are Much Higher Than the Market Averages