- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 7. Statistical Concepts and Market Returns
- Subject 3. Frequency Distributions

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**CFA Practice Question**

An analyst gathers the following information about the price-earnings (P/E) ratios for the common stocks held in a portfolio:

I | 8.00 - 16.00 | 20

II | 16.00 - 24.00 | 52

III | 24.00 - 30.00 | 24

IV | 30.00 - 38.00 | 14

Interval | P/E range | Frequency

I | 8.00 - 16.00 | 20

II | 16.00 - 24.00 | 52

III | 24.00 - 30.00 | 24

IV | 30.00 - 38.00 | 14

The relative frequency for Interval II is closest to ______.

A. 45.85%

B. 47.27%

C. 52.78%

**Explanation:**52 / (20 + 52 + 24 + 14) = 47.27%

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