The Price-Earnings Ratio for Firms in a Given Industry Follows

question 86

Multiple Choice

The price-earnings ratio for firms in a given industry follows the normal distribution. In this industry, a firm whose price-earnings ratio has a standardized value of z = 1.00 is approximately in the highest ______ percent of firms in the industry.

• A)16 percent
• B)34 percent
• C)68 percent
• D)75 percent

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Definitions:

LDCs

Acronym for Less Developed Countries, referring to countries with lower levels of economic development and standard of living.

Average Workweek

The typical number of hours worked in a week by employees in a particular sector or economy.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Population Growth

Population growth refers to the increase in the number of individuals in a population, commonly measured as the percentage change in population over a specific period.