Firms with higher expected growth rates tend to have P/E ratios that are ________ the P/E ratios of firms with lower expected growth rates.

Name: Firms with higher expected growth rates tend to have P/E ratios that are ________ the P/E ratios of firms with lower expected growth rates.
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Question

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Firms with higher expected growth rates are generally associated with higher risk and higher potential returns, which can lead to higher P/E ratios compared to firms with lower expected growth rates.

Firms with Higher Expected Growth Rates Tend to Have P/E