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Basic Question 0 of 5
When averaging P/E multiples of a group of stocks, the harmonic mean is sometime used to reduce the impact of
B. small outliers only.
C. both large and small outliers.
A. large outliers only.
B. small outliers only.
C. both large and small outliers.
User Contributed Comments 4
| User | Comment |
|---|---|
| daverco | Outliners? Interesting. |
| alejandroc | Never heard it before. |
| ABYCAPRI | Perhaps Outliers!? |
| thebkr777 | It was after all only $100 |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain the use of the arithmetic mean, the harmonic mean, the weighted harmonic mean, and the median to describe the central tendency of a group of multiples;
evaluate whether a stock is overvalued, fairly valued, or undervalued based on comparisons of multiples.
CFA® 2025 Level II Curriculum, Volume 4, Module 23.