Question: What may be a problem of comparing the P / E of a stock to the P / E of the overall market? A stock's
What may be a problem of comparing the PE of a stock to
the PE of the overall market?
A stock's PIE ratio can remain above or below market average for extended periods.
The overall market may not be sufficiently broad for the purposeof comparison.
Given the number of stocks in the overall market, itis very time consuming to
calculate the PE of the marke.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
