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A ratio worked out with actual past earnings is described as a:
ATraining ratio
BTreating ratio
CTrailing ratio
DTrading ratio
Answer & Solution
Correct answer: C. Trailing ratio
1. Finance sites label it with ttm.
2. The earnings already happened.
3. It is a trailing ratio.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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