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:

Hydrolysis

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Alkaline Mucus

A type of mucus that has a higher pH and helps protect mucosal linings from acidic conditions.

Epithelial Cells

Specialized cells that line the surfaces of organs, vessels, and cavities in the body, serving as a protective barrier and involved in absorption, secretion, and sensation.

Intrinsic Factor

A protein produced by the stomach that is essential for the absorption of vitamin B12.