Answer:
Option a) Has an above average price-to-earning ratio
Step-by-step explanation:
We are given the following in the question:
The price-to-earning ratio for firms in a given industry is distributed according to normal distribution.
For a particular firm the ratio x has a standard normal variable has a value,
z = 1
Formula:
Thus, the firm has an above average price-to-earning ratio as the ratio is one standard deviation above the mean.
Option a) Has an above average price-to-earning ratio