n NISM Certifications
NSM General NISM
Medium

A fund's PB ratio is 4x. How should this be interpreted?

Practice question from Advanced B1 S4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The fund is reasonably priced

  2. The fund is in the "watch" zone — neither clearly cheap nor expensive

    Correct answer

  3. C

    The fund is significantly undervalued

  4. D

    The fund's PE is likely below category average

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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