Chartered Financial Analyst Level 2
Get started today
Ultimate access to all questions.
An analyst builds the following multiple regression model for a company's P/E ratio:
Coefficient
-
Intercept: 2.8
-
Factor 1: 1.8
-
Factor 2: -0.4
If Factor 1 and Factor 2 are assumed to be 12.5 and 5.3, respectively, the predicted P/E ratio is closest to:
An analyst builds the following multiple regression model for a company's P/E ratio:
Coefficient
-
Intercept: 2.8
-
Factor 1: 1.8
-
Factor 2: -0.4
If Factor 1 and Factor 2 are assumed to be 12.5 and 5.3, respectively, the predicted P/E ratio is closest to:
Exam-Like
A
23.18
B
25.30
C
Comments
Loading comments...