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ICMA Exam FMFQ Topic 3 Question 50 Discussion

Actual exam question for ICMA's FMFQ exam
Question #: 50
Topic #: 3
[All FMFQ Questions]

What does the P/E ratio measure?

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Suggested Answer: B

by Kristeen at Feb 09, 2024, 12:54 AM

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Jesusita
1 months ago
If only the P/E ratio could tell me the price of my next cup of coffee...
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Miles
7 days ago
A) Price/Earnings
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Roosevelt
1 months ago
I heard the P/E ratio stands for 'Please Excuse my Ridiciculously high Earnings'.
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Bernardo
2 days ago
B) Profit/Earnings
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Skye
5 days ago
No, it actually stands for Price/Earnings.
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Keneth
15 days ago
A) Price/Earnings
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Carmela
2 months ago
A) Price/Earnings, of course! What was I thinking? I must have been daydreaming about my next stock investment instead of focusing on the question.
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Queen
4 days ago
B) Profit/Earnings
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Sheron
1 months ago
A) Price/Earnings, of course! What was I thinking? I must have been daydreaming about my next stock investment instead of focusing on the question.
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Evangelina
2 months ago
Hmm, I thought it had something to do with the estimated yield, but now I see that's not the case. Good to know!
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Della
20 days ago
No problem! It's actually the Price/Earnings ratio.
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Rusty
22 days ago
Oh, I always thought it was related to estimated yield too. Thanks for clarifying!
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Shawnda
23 days ago
D) Profit/Estimated yield
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Kenneth
24 days ago
C) Price/Estimated yield
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Tamie
1 months ago
B) Profit/Earnings
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Gabriele
1 months ago
A) Price/Earnings
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Avery
2 months ago
I was pretty sure it was B) Profit/Earnings, but I guess I was mistaken. Thanks for the clarification!
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Tequila
2 months ago
The P/E ratio measures the Price to Earnings ratio, so the correct answer is A) Price/Earnings.
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Deeanna
15 days ago
Actually, it's not Profit/Earnings. The P/E ratio is specifically Price/Earnings.
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Eun
23 days ago
B) Profit/Earnings
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Stevie
28 days ago
That makes sense, the P/E ratio is a measure of a company's current share price relative to its earnings per share.
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Cathern
2 months ago
A) Price/Earnings
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Lisbeth
2 months ago
I agree with Dong. The P/E ratio helps investors gauge whether a stock is overvalued or undervalued.
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Dong
2 months ago
I think it measures the relationship between a company's stock price and its earnings per share.
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Dion
2 months ago
A) Price/Earnings
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