Shown Below Is a Correlation Table Showing Correlation Coefficients Between $\text { Correlations: Stock Price, EPS, PE }$

question 2

Multiple Choice

Shown below is a correlation table showing correlation coefficients between stock price, Earnings per share (EPS) and price/earnings (P/E) ratio for a sample of 19 publicly traded Companies.Which of the following statements is false?
$\text { Correlations: Stock Price, EPS, PE }$$\begin{array} { | l | l | l | } \hline \text { Stock Price } & \text { EPS } & \\\hline \text { EPS } & 0.875 & \\\hline \text { PE } & 0.323 & - 0.111 \\\hline\end{array}$

• A)EPS is the best predictor of stock price.
• B)The strongest correlation is between EPS and stock price.
• C)There is a weak negative association between PE and EPS.
• D)PE is the best predictor of stock price.

Analyze the impact of deregulation on various industries and consumer prices.

Discuss the significance of mergers and acquisitions in altering market competition.

Understand the consequences of illegal corporate practices, including false advertising and market manipulation.

Examine the role of antitrust enforcement in a global context, including the effect of international bodies.

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Definitions:

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