SS6 - Economics Quiz averages, without, search, during

Carson

Molodovsky effect is:

a) P/Es of cyclical firms are higher than their own historical averages during downturns
b) P/Es of cyclical firms are lower than their own historical averages during downturns
c) P/Es of cyclical firms are higher than historical averages for all firms during downturns
d) a cocktail I had last night

Extra points if you can tell me which sub-section where you read this (without using the e-book search feature).

mik82

during a period of low - earning is low. So P/E is high
during a high period - earnings are high - so P/E is low.

so the P/E would be higher than historical average during downturn. a)

If I needed to know which section - I would have to consume that same cocktail you had last night... (for the onelasttime)...


CP