Question: If a stock has a much higher than normal P/E ratio, investors probably expect: 1. Very high expected rate of return. 2. Rapid growth in

If a stock has a much higher than normal P/E ratio, investors

probably expect:

1. Very high expected rate of return.

2. Rapid growth in earnings.

3. Large increases in the price of the stock.

4. All three.

6) Preferred stock

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