[Answer] What may be a problem of comparing the P/E of a stock to the P/E of the overall market?

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What may be a problem of comparing the P/E of a stock to the P/E of the overall market? What may be a problem of comparing the P/E of a stock to the P/E of the overall market ? a) the overall market may not bed sufficiently broad for the purpose of comparison b ) given the number of stocks in the overall market it is very time consuming to calculate P/E of the market c ) most stock market indices exclude the effect of dividends d) a stocks P /E ratio can remain above or below market … What may be a problem of comparing the P/E of a stock to the P/E of the overall market ? $ 50 If the earnings per share of a company is $1 and the earnings yield is 2 % What is the price per share? What may be a problem of comparing the P/E of a stock to the P/E of the overall market? A stock's P/E ratio can remain above or below market average for extended periods . Here is a chart of the Nasdaq Composite the world's main technology index . The price-to-earnings ( P/E ) ratio is a fairly simple tool for assessing company value. Judging by how often the P/E ratio gets touted—by Wall Street analysts the financial media and colleagues at the office water cooler—it's tempting to think it's a foolproof tool for making wise stock investment choices. What may a problem of comparing a company's P/E to the overall market? a. Stock 's P/E ratio can remain above or below marekt average for extended periods b. The time perido chos...

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