When the market becomes too bullish,the average P/E ratio will fall.

Name: When the market becomes too bullish,the average P/E ratio will fall.
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Question

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When the market becomes too bullish, the average P/E ratio tends to rise due to increased optimism and expectations of higher earnings growth. As a result, stock prices may become overvalued relative to earnings, which can eventually lead to a market correction or bearish sentiment causing the average P/E ratio to increase.

When the Market Becomes Too Bullish,the Average P/E Ratio Will