Since 1997 real stock market index prices have far exceeded their standard, conventional valuation of
_______ times earnings.
A) thirty
B) forty
C) fifteen
D) twenty five

Question

Quizplus · Accepted Answer

Since 1997, real stock market index prices have often been valued at more than the conventional standard of fifteen times earnings. This metric, known as the price-to-earnings (P/E) ratio, is a common way to gauge if a stock is over or undervalued. Historically, a P/E ratio of around 15 has been considered standard or average, but in recent years, higher ratios have become more common, indicating that investors are willing to pay more for each dollar of earnings, often due to expectations of future growth.

Since 1997 Real Stock Market Index Prices Have Far Exceeded