A Research Analyst Wants to Compare the Dispersion in the Price-Earnings

question 129

Multiple Choice

A research analyst wants to compare the dispersion in the price-earnings ratios for a group of common stock with their return on investment. For the price-earnings ratios, the mean is 10.9 and the standard deviation is 1.8. The mean return on investment is 25 percent and the standard deviation 5.2 percent. What is the relative dispersion for the price-earnings ratios and return on investment?

• A) Ratios = 32.0 percent, investment = 19.0 percent
• B) Ratios = 16.5 percent, investment = 20.8 percent
• C) Ratios = 132.0 percent, investment = 190.0 percent
• D) Ratios = 50.0 percent, investment = 10.0 percent

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Definitions:

Zygote

The initial cell formed when two gamete cells are joined by means of sexual reproduction, marking the beginning of a new organism's development.

Fertilized Egg

A cell that results from the union of a sperm cell with an egg cell, marking the beginning of a new organism's development.

Teratogens

External agents such as chemicals, viruses, and radiation that can cause developmental abnormalities or birth defects in an embryo or fetus.

Developing Fetus

Refers to a prenatal human between the embryonic state and birth, during which significant growth and development occur.