PE ratioForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › PE ratioThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts February 27, 2021 at 8:42 pm #612032 dvamfireMemberTopics: 36Replies: 29☆☆Hello sir,If a company has a low pe ratio, Capm is unable to forecast returns accurately.Why does this sentence is correct? February 28, 2021 at 9:24 am #612075 John MoffatKeymasterTopics: 56Replies: 53814☆☆☆☆☆As it stands, the statement on its own is not strictly true (where have you found the statement – it depends somewhat on the context).CAPM does not forecast returns. CAPM determines the rate of return demanded by shareholders, which is not the same as forecasting the returns.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In