If Two Firms Have the Same Expected Earnings Per Share

question 64

True/False

If two firms have the same expected earnings per share (EPS)and the same standard deviation of expected EPS,then they must have the same amount of business risk.

---

Definitions:

Biguanides

A class of medications primarily used to lower blood sugar levels in patients with type 2 diabetes; also found in disinfectants and antiseptics.

Thiazolidinediones

A class of medications used to lower blood glucose levels in the treatment of type 2 diabetes; they work by increasing insulin sensitivity in fat and muscle cells.

Type 1 Diabetes

A chronic condition in which the pancreas produces little or no insulin due to the immune system attacking and destroying insulin-producing cells.