n NISM Certifications
NSM General NISM
Medium

Fund A has a PE of 30 and earnings growth of 30%. Fund B has a PE of 30 and earnings growth of 15%. What can be concluded?

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

Options

  1. A

    Both funds are fairly valued because they have the same PE

  2. B

    Fund A is expensive and Fund B is fairly valued

  3. C

    Fund B is fairly valued and Fund A is expensive

  4. Fund A is fairly valued and Fund B is expensive

    Correct answer

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

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