单选题
An argument against using the price-to-earnings (P/E) valuation approach is that: A. earnings power is the primary determinant of investment value. B. earnings can be negative. C. research shows that P/E differences are significantly related to long-run average stock returns.
【正确答案】
B
【答案解析】Negative earnings render the P/E ratio useless. All of the other factors increase the usefulness of the P/E approach.