Companies A and B are both in the same industry and generally compete against each other in the marketplace.Stock A has a P/E ratio of 15 while Stock B's P/E is 21.Which of the following is not true about the relative positioning of Stock A and Stock B?
A) Stock B has lower perceived risk.
B) Investor's are willing to pay a higher price for shares in Company B.
C) Company A business performance is probably not as strong as Company B performance.
D) All of the statements are correct.
Correct Answer:
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