Submitted By: Michael Moore, University of Pennsylvania
Date:February 26, 2012
Grade Level(s):9, 10, 11, 12
This lesson continues to look at the investor’s decision-making process. Financial documents and financial ratios are one piece of this puzzle. In this lesson, students will learn about another piece of evidence that investors use when making choices: relative value ratios. This lesson will cover the main relative value ratio (P/E ratio), giving students more tools for their investment toolbox.