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 Stock Price EPS EPS 0 875 PE 0 323 0 111 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 E The weakest correlation is between PE and EPS

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

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?

	Stock Price	EPS
EPS	0.875
PE	0.323	-0.111

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.

E. The weakest correlation is between PE and EPS

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