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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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

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