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Preliminary exam General Studies April 04

1. With reference to “Price-to-Earnings (P/E) ratio” consider the following statements:

It’s a valuation metric used to assess the relative value of a company’s stock price compared to its total earnings

It is one of the most widely used tools by investors and analysts to gauge the attractiveness of a stock

A high P/E ratio suggests that investors are willing to pay a premium for the company’s stock relative to its earnings

How many of the above statements is/are correct?

(a) only one (b) Only two (c) All three (d) None

General Studies

Political Science and International Relations

Sociology

Some Reference Essays

List of previous year essay topics (1997-2019)

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