Which of the following is a possible indicator that an asset-price crash is over? A)stock price

Question

Which of the following is a possible indicator that an asset-price crash is over?
A)stock price < past earnings
B)stock price < expected earnings
C)stock price > expected earnings
D)change in stock price < 0

Quizplus · Accepted Answer

A stock price recovering above expected earnings can indicate that investors have regained confidence in the company's future profitability and potential growth, signaling the end of a price crash. Choices A and B do not necessarily indicate the end of a crash, as past earnings and expected earnings may not accurately reflect a company's current or future financial health. Choice D is not a helpful indicator on its own as stock prices may fluctuate even in the absence of a crash.

Which of the Following Is a Possible Indicator That an Asset-Price