GARP 2016-FRR Exam - Topic 2 Question 20 Discussion

Actual exam question for GARP's 2016-FRR exam

Question #: 20
Topic #: 2

[All 2016-FRR Questions]

From a risk point of view, which of the following factors will generally lead to the fluctuation of equity values with industry P/E levels and a company's individual earnings?

I . Sales

II . Cost management

III . Commercial success of the company

IV . Market sentiment

AI, II

BII, IV

CIII, IV

DI, II, III

Show Suggested Answer

Suggested Answer: D

by Evangelina at May 15, 2026, 05:40 AM

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Nathan

Definitely think sales and cost management matter!

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Rebecka

5 days ago

I vaguely remember that both sales and cost management are key, but I’m uncertain if they alone can explain fluctuations in P/E ratios.

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Tyra

10 days ago

I feel like commercial success is definitely a factor, but I can't recall if it was included in the options we practiced.

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Aracelis

15 days ago

I think market sentiment plays a huge role in equity values, especially when we looked at similar questions in practice exams.

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Rusty

2 months ago

I remember we discussed how sales and cost management can impact earnings, but I'm not sure if they both directly affect P/E levels.

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