Coincidence expected, correct, question

andytrader

I'm not sure where I got this info but I jotted down a quick note in my elan guide (and it wasnt from there, obviously) that if Earnings are expected to grow/ increasing, the leading P/E will be < than Trailing.

Again not sure where I got this from but there was a question on the CFAI mock asking which PE is larger based on the figures given and I just guessed it based on the assumption above, without the calc and it was the correct answer

Is this alway's the case or was it a coincidence? Question # 88 CFAI Morning Session.



Edited 1 time(s). Last edit at Thursday, May 27, 2010 at 02:15AM by njlevel10610.