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Which of the Following Is a Finding of Beaver,Lambert and Morse

Question 25

Multiple Choice

Which of the following is a finding of Beaver,Lambert and Morse (1980) ?


A) Share prices and related returns are related to accounting earnings.
B) Over short intervals, earnings are more strongly associated with returns than are realised cash flows.
C) Fair value estimates of bank's financial instruments seem to provide a better explanation of bank share prices than historical cost.
D) Revaluation of assets results in better alignment of market and book values.

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