Question: Analyst do not usually regress the price to earnings ratios of a sample of comparable firm against their fundamentals variables. Which of the following is

Analyst do not usually regress the price to earnings ratios of a sample of comparable firm against their fundamental’s variables. Which of the following is true? Answer might be more than one.

a. Empirical evidence to date suggests that the explanatory power of the regression model is unstable over time

b. Empirical evidence to date suggests that the regression coefficient is unstable over time

c. These fundamentals variables tend to be correlated

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