Use the following to answer the question(s) below.
Stock prices and earnings per share (EPS) data were collected for a sample of 15 companies. Below are the regression results. The dependent variable is Stock Price.
-What is the correlation between stock price and EPS?
A) -0.975
B) 0.975
C) 0.906
D) 0.950
E) -0.950

Question

Use the following to answer the question(s) below.
Stock prices and earnings per share (EPS) data were collected for a sample of 15 companies. Below are the regression results. The dependent variable is Stock Price. 
-What is the correlation between stock price and EPS?
A) -0.975 
B) 0.975 
C) 0.906 
D) 0.950 
E) -0.950

Quizplus · Accepted Answer

The correlation coefficient between stock price and EPS (Earnings Per Share) is typically positive, indicating that as EPS increases, the stock price tends to increase as well. A correlation of 0.975 suggests a very strong positive relationship.

Use the Following to Answer the Question(s) Below