48
(Choose 1 answer)
True or False:
(See picture)
A. False
B. True
Given below is the scatter plot of the price/earnings ratio versus earnings per share of 20 U.S. companies. There appear to be a positive relationship between price/earnings ratio and earnings per share.
Scatter Plot
70 00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
0.00
0.20
0.40
0.60
0.80
1.00
P/E Ratio
