# Question

The price-to-earnings growth ratio, or PEG ratio, is the market’s valuation of a company relative to its earnings prospects. A PEG ratio of 1 indicates that the stock’s price is in line with growth expectations. A PEG ratio less than 1 suggests that the stock of the company is undervalued (typical of value stocks), whereas a PEG ratio greater than 1 suggests the stock is overvalued (typical of growth stocks). The accompanying table shows a portion of PEG ratios of companies listed on the Dow Jones Industrial Average; the entire data set, labeled DOW_PEG, can be found on the text website.

Company ..... PEG Ratio

3M (MMM) .... 1.4

Alcoa (AA) ..... 0.9

: :

Walt Disney (DIS) ... 1.2

Construct a stem-and-leaf diagram on the PEG ratio. Interpret your findings.

Company ..... PEG Ratio

3M (MMM) .... 1.4

Alcoa (AA) ..... 0.9

: :

Walt Disney (DIS) ... 1.2

Construct a stem-and-leaf diagram on the PEG ratio. Interpret your findings.

## Answer to relevant Questions

The following table lists the sale price and type of 20 recently sold houses in New Jersey.a. Construct a frequency distribution on types of houses sold in New Jersey. Interpret your findings.b. Construct a frequency ...The accompanying figure plots the monthly stock price of Caterpillar, Inc., from July 2009 through March 2011. The stock has experienced tremendous growth over this time period, almost tripling in price. Does the figure ...Given the following observations from a sample, calculate the mean, the median, and themode.Calculate the 20th, 50th, and 80th percentiles for the following dataset:Consider the following population data:a. Calculate the range.b. Calculate MAD.c. Calculate the population variance.d. Calculate the population standarddeviation.Post your question

0