n NISM Certifications
NSM General NISM
Medium

When evaluating a fund's PE ratio, the correct reference point is:

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

Options

  1. A

    The Sensex PE at the time of investment

  2. B

    The average PE of all equity funds in India

  3. C

    The PE of the fund manager's previous fund

  4. The category average PE of similar funds

    Correct answer

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

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