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5) Stata Exercise: A stock's price-earnings ratio (P/E) ratio is the per-share price of it's stock divide by the company's annual profit per share. The

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5) Stata Exercise: A stock's price-earnings ratio (P/E) ratio is the per-share price of it's stock divide by the company's annual profit per share. The P/E ratio for the stock market as a whole is used by some analysts as a measure of whether stocks are cheap or expensive, in comparison with other historical periods. The Stata dataset, PEratio.dta, gives annual P/E ratios for the S&P 500. Load this data into Stata to answer the following questions and include any relevant Stata output in your answers a.) What is the sample mean and standard deviation of the P/E ratio from 1980-2015? b.) Plot a histogram of the P/E ratio and clude this in your problem set answers. c.) Find a the values of the P/E ratio that are greater than two sample standard deviations from the mean Report these values and their corresponding years. Now find all the values of the P/E ratio that are less than two standard deviations from the sample mean. Report these values and their corresponding years. d.) The U.S. economy was in recession in the years 1980, 1981, 1982, 1990, 2001, 2008, and 2009. Compute the sample mean of the P/E atio both during recession years and during expansion years

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