A firm with below average earnings growth in one year is likely to:
A)have below average earnings growth in the following year
B)have had below average earnings growth in the previous year
C)have either above or below average earnings growth in the following year, (it is random)
D)continue this trend downward in the years to follow

Question

Quizplus · Accepted Answer

Earnings growth can be influenced by various factors and is not necessarily indicative of future performance. It can be random and may not follow a consistent trend.

A Firm with Below Average Earnings Growth in One Year