answer 3,4

3. One measure of pricing in property market is the ratio of housing price to annual rental income. Assume that you decide to compute this ratio and compare it to the multiple at which stocks are trading. Which valuation ratio would be the one that corresponds to the house price/rent ratio? A. Price Earnings Ratio B. EV to Sales C. EV to EBIT 4. Which of the following is a cause of asymmetric distribution in price-to- earning ratio? I. Firms with negative earnings are dropped. The outliers are big and positive numbers III. There is insufficient data to have a normal distribution A. I only B. II only C. I &