1. The table below presents the historical P/E ratio for Apple Inc. The P/E ratio increased from 2002 to 2003, and then decreased for a few years.
   1. Please explain how the increase and decrease of P/E ratio reflect investor view about Apple. (2 points)
   2. The current P/E ratio of Apple is 33.7. If we use the past 10 years average P/E ratio (from 2010-2019) as a benchmark, is Apple currently underpriced, fairly priced or overpriced? Please explain. (3 points)

Year	P/E ratio
2002	80.6
2003	109.1
2004	52.4
2005	32.5
2006	32.6
2007	38.0
2008	20.7
2009	20.1
2010	18.4
2011	13.6
2012	14.9
2013	11.9
2014	15.5
2015	11.9
2016	13.5
2017	16.6
2018	18.8
2019	18.2