Which Financial Indicator Shows the Current Market's Evaluation of a Stock,based

question 2

Multiple Choice

Which financial indicator shows the current market's evaluation of a stock,based on its earnings?

• A) debt to asset ratio
• B) price/earnings ratio
• C) coverage of fixed charges
• D) debt to equity ratio
• E) times interest earned

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean.

Amount Win

The total sum of money or prize one receives from a competition, lottery, or gamble.

Probability Distribution

A mathematical function that describes the likelihood of various outcomes in an experiment.

Standard Deviation

A measure indicating the extent of deviation or spread of quantities in a collection.