- CFA Exams
- CFA Exam: Level II 2021
- Study Session 11. Equity Valuation (3)
- Reading 29. 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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