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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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Your review questions and global ranking system were so helpful.
Lina
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® 2025 Level II Curriculum, Volume 4, Module 23.