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If a company's P/E ratio suddenly decreases: Multiple Choice you should sell the...

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Question

Accounting

If a company's P/E ratio suddenly decreases:

Multiple Choice

  • you should sell the stock as soon as possible.

  • you should buy more of the stock to increase your average gain.

  • the company probably announced higher earnings forecasts.

  • the market must have reacted to some bad news that is expected to affect the company in the future.

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