When Using Eigenvalues to Determine the Number of Factors,only Factors

question 10

True/False

When using eigenvalues to determine the number of factors,only factors with eigenvalues greater than .05 are retained.

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Definitions:

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if a stock is over or under-valued.

Future Profitability

Future profitability refers to an entity's potential to generate earnings over upcoming periods, indicating its financial prospects.

Horizontal Analysis

A financial analysis technique that compares historical financial information over a series of periods to identify trends and growth patterns.