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?

APrice/Earnings

BProfit/Earnings

CPrice/Estimated yield

DProfit/Estimated yield

Show Suggested Answer

Suggested Answer: B

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

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Carmela

2 days 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

9 days 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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Avery

11 days 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

18 days ago

The P/E ratio measures the Price to Earnings ratio, so the correct answer is A) Price/Earnings.

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Lisbeth

19 days ago

I agree with Dong. The P/E ratio helps investors gauge whether a stock is overvalued or undervalued.

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Dong

20 days ago

I think it measures the relationship between a company's stock price and its earnings per share.

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Dion

21 days ago

A) Price/Earnings

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