Firm A is high-risk, and Firm B is low-risk. Everything else equal, which firm would you expect to have a higher P/E rat
Posted: Sun Jun 05, 2022 7:37 am
Firm A is high-risk, and Firm B is low-risk. Everything else
equal, which firm would you expect to have a higher P/E ratio? A)
Firm A B) Firm B C) Both would have the same P/E if they were in
the same industry. D) There is not necessarily any linkage between
risk and P/E ratios. Answer: C
--why is the answer C and not B??--
equal, which firm would you expect to have a higher P/E ratio? A)
Firm A B) Firm B C) Both would have the same P/E if they were in
the same industry. D) There is not necessarily any linkage between
risk and P/E ratios. Answer: C
--why is the answer C and not B??--