A fiNancial Advising Company Has Determined That the Price-To-Earnings Ratios

question 132

Multiple Choice

A financial advising company has determined that the price-to-earnings ratios for 20 randomly
Selected publicly traded companies range between 0.9 and 2.9. Given that the price-to-earnings
Ratios are uniformly distributed, what is the average price-to-earnings ratio?

• A) 0.9
• B) 1.9
• C) 2.9
• D) 3.8

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