A Research Analyst Wants to Compare the Dispersion in the Price-Earnings

Multiple Choice

A research analyst wants to compare the dispersion in the price-earnings ratios for a group of
Common stock with their return on investment. For the price-earnings ratios, the mean is 10.9 and
The standard deviation is 1.8. The mean return on investment is 25 percent and the standard
Deviation 5.2 percent. What is the relative dispersion for the price-earnings ratios and return on
Investment?

A) Ratios = 32.0 percent, investment = 19.0 percent
B) Ratios = 16.5 percent, investment = 20.8 percent
C) Ratios = 132.0 percent, investment = 190.0 percent
D) Ratios = 50.0 percent, investment = 10.0 percent