Exhibit 11.5 reported market \(P / E\) ratios for equity markets across the globe. Using the data reported in the exhibit, answer the following questions:

a. Which three markets provide the highest capitalization for a currency unit of carnings on average?

b. Which three markets provide the lowest capitalization for a currency unit of earnings on average:

c. Which markets in 1997 and 1998 provided the highest average return after inflation:

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Exhibit 11.5 Comparison of Global Equity Markers P/E Ratios, Tields, and Domestic Inflation Rates Price-Earning Gross Ratio Dividend Yield Inflation Rate Total Retum 1998 1997 1998 1997 1998 1997 1998 1997 Time zone Exchange % % % % % Sort Ames 32.5 21.7 13 12 1,6 1.7 1.9 20,8 America Chicago NA NA NA NA 1.6 1.7 NA NA Mexico 16.2 179 2.9 14R 18.6 Montical 141 19.6 20 21 0.9 Nasdaq 37.1 26.4 NA NA 10 NYSE 271 334 NA 1.7 Lo Toronce 28.5 22.9 1.7 16 09 cbbc b 15.7 -214 57.0 1.6 08 174 1.7 NA NA 1.7 NA 32.0 1.6 1.5 14.6 VEBCHYT NA NA NA NA 0.9 1.6 NA NA Souty Buenos Aires 130 160 3.6 20 0.7 America Lima NA NA 4.3 3.8 6.00 Bio de fancita 10.2 11.1 9.4 4.0 18 Santiago 12.7 136 5.4 3:8 4.7 Sao Paulo 15.2 12.5 R NA NA . BENER 0:3 -20.9 27.6 6.5 255 NA 7.7 382 43.2 6.0 -196 1.6 2.7 -335 44.8 Europe Africa Amsterdam 224 20.2 R 20 2.3 201 2.3 207 43.8 Middle East Athem 27.2 12.4 B 16 29 39 4.8 86,0 61.4 Barclexta 19.6 17,8 2.4 31 14 2.0 350 43.1 Billa NA NA NA 27 14 2.0 NA 48.3 Brussels 23.3 17.3 1.9 31 0.0 1,0 43.5 36.2 Copenhagen NA NA NA NA 17 21 NA NA Germany 30.6 27.8 1.3 1.7 08 1.8 16.3 44.9 Helsinki 22.0 12.4 R 1.7 2.7 B 09 1.8 70.2 35.0 Trish 21.3 19.1 1.6 2.0 29 15 24.8 50.7 Istanbul 8.8 24.4 04 1.0 659 99.1 24.3 255.2 haly 25:0 24.7 14 17 1.6 1.5. 42.4 59.9 Johannesburg 19A 16:8 3.3 2.7 9.0 6.1 -9.1 41 Lasbox 213 22.5 RE 26 3.0 2.8 2.2 26.2 32.0 Ljubljana 17.5 166 28 3.3 27 94 24.2 220