The Price to Earnings Ratio,also Called the P/E Ratio of a Stock

Multiple Choice

The price to earnings ratio,also called the P/E ratio of a stock is a measure of the price of a share relative to the annual net income per share earned by the firm.Suppose the P/Es for a firm's common stock during the past four quarters be 10,12,15,and 11,respectively.The standard deviation of the P/E ratio over the four quarters is:

A) 1.87
B) 2.16
C) 3.50
D) 4.67