Which of the following statements is most correct?(a) P/E ratios are higher for firms with high growth prospects, other things held constant, but they are lower for riskier firms.(b) Higher market/book (MB) ratios are generally associated with firms thathave a high rate of return on common equity.(c) A high quick ratio is not always a good indication of a well-managed liquidity position.(d) All of the above.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following statements is most correct?
(a) P/E ratios are higher for firms with high growth prospects, other things held constant, but they are lower for riskier firms.
(b) Higher market/book (MB) ratios are generally associated with firms that
have a high rate of return on common equity.
(c) A high quick ratio is not always a good indication of a well-managed liquidity position.
(d) All of the above.

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