The Price to Earnings Ratio, Also Called the P/E Ratio

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 are 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