- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Market-Based Valuation: Price and Enterprise Value Multiples
- Subject 12. Valuation Indicators: Issues in Practice
CFA Practice Question
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.
Correct Answer: B
A weighted harmonic mean would even be better.
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