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Basic Question 1 of 2
Index fund vendors frequently use the ______ to calculate the average P/E multiple.
B. harmonic mean.
C. weighted mean.
A. arithmetic mean.
B. harmonic mean.
C. weighted mean.
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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® 2024 Level II Curriculum, Volume 4, Module 25.