Boxplots of Earnings Per Share (EPS) Data for a Sample

question 35

Multiple Choice

Boxplots of earnings per share (EPS) data for a sample of retail company stocks and a sample of energy company stocks are shown below.Which of the following statement is true about the distributions of EPS for retail and energy stocks?

• A)The distribution of EPS for retail stocks is skewed to the right.
• B)The distribution of EPS for energy stocks is symmetric.
• C)Both distributions of EPS are symmetric.
• D)The distribution of EPS for retail stocks is skewed to the left.
• E)The distribution of EPS for energy stocks is skewed to the left.

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Definitions:

Company-specific

Refers to information, events, or characteristics that only affect a single company, not the industry as a whole or the market at large.

Unsystematic Events

Specific, unpredictable events that affect a single company or a small group of companies, not the entire market.

Investment Risk

The potential for loss of value in an investment, often measured by the variability of returns associated with a given asset.

Risk-averse Investor

A risk-averse investor is someone who prefers to minimize financial risk and is likely to choose investments with lower potential returns to avoid losing money.