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Basic Question 0 of 3
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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
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.