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Basic Question 2 of 2
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 just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
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.