Two Firms, Although They Operate in Different Industries, Have the Same

question 87

True/False

Two firms, although they operate in different industries, have the same expected earnings per share and the same standard deviation of expected EPS.Thus, the two firms must have the same business risk.

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Definitions:

Union Of Events

The set of outcomes that belong to either one or both of two or more events in probability theory.

Sample Points

Sample points are specific values or instances selected from a population or a set, which represent a portion of the population for analysis.

Independent Events

Events whose outcome or occurrence does not affect each other.

P(A ∩ B)

The probability of the intersection of events A and B, indicating the likelihood of both events occurring simultaneously.