The price-toearnings ratio (PIE ratio) is the ratio for valuing a company that measures its current share price (P) relative to its earnings per share (EPS). The following table shows the equency distributions of PE ratios of thirty companies that trade on the Toronto Stock Exchange. The current PJ'E for Canada's stock market is 19.58 which investors can use as a benchmark in determining whether a stock is undervalued (PIE 5 19.58) or overvalued (PIE > 19.58). Classes Frequency Relative Frequency PIE ratios that are less than or equal to 10 1 0.0333 PIE ratios that are more than 10 but less than or equal to 20 15 A PJ'E ratios that are more than 20 but less than or equal to 30 B 0.3333 PIE ratios that are more than 30 but less than or equal to 40 1 0.0333 PIE ratios that are more than 40 but less than or equal to 50 1 0.0333 PIE ratios that are more than 50 but less than or equal to 60 1 0.0333 PIE ratios that are more than 60 but less than or equal to 70 1 0.0333 *Relativeegaencies do not sum to 1 due to rounding The frequency table is shown graphically below. (a) What are the values for the missing entries given by A and B in the table? (b) What is the name of the graph as shown above? What are 2 other techniques that can be used to depict the PE information graphically? (c) (i) What percentage of the thirty companies is undervalued based on the PE ratio guidelines? (ii) In which class would you nd the value of the 90m percentile? (iii) Which would you expect to have the higher standard deviation: the sample of the 30 stocks or Canada's stock market? Clearly state your reason