The correct option is d) a stocks P/E ratio can remain above or below market average for extended periods
Explanation:
Based on the information given what may the issue of comparing the P/E of a stock to the P/E of the overall market is that a stocks P/E ratio can remain high or have low market average for a periods of time reason been that high P/E may indicate that the stock value is high while low P/E may indicate that the stock value is low.
