Treynor measure - Study guides, Class notes & Summaries

1. The price-earnings valuation method applies the ____ price-earnings ratio to ____ earnings per share in order to value the firm's stock. a. firm's; industry b. firm's; firm's c. average industry; industry d. average industry; firm's ANS: D PTS: 1 2. A firm is expected to generate earnings of $2.22 per share next year. The mean ratio of share price to expected earnings of competitors in the same industry is 15. Based on this information, the valuation of the firm's shares based ...

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