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Basic Question 0 of 4
Which of the following is the LEAST ACCURATE with respect to using the P/E-to-growth (PEG) ratio?
B. Looking at the PEG ratio alone does not reveal differences in risk.
C. Stocks with the higher PEG are deemed to be more attractive purchases.
A. PEG is simply the stock's P/E ratio divided by its expected earnings growth rate. It assumes that there is a linear relationship between P/E and growth.
B. Looking at the PEG ratio alone does not reveal differences in risk.
C. Stocks with the higher PEG are deemed to be more attractive purchases.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve;
CFA® 2025 Level II Curriculum, Volume 4, Module 26.