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CFA Level 1 Exam
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CFA Level 1 Exam
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Question No. 1
The following is true about the price earnings ratio
Choose the correct option from the given list.
it is the ratio between the company's current market value and its earnings per share
none of these answers
the ratio is calculated based on the earnings per share from the past year
stocks with price earnings ratios of 25 or less are considered to be underpriced
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