Which of the following affects stockholders' expectations of company profits?

Question

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All of the given factors (industry risk, general economic conditions, and historical company earnings) can affect shareholders' expectations of company profits. Industry risk refers to the likelihood of the industry in which a company operates being impacted by external factors that could either positively or negatively impact the company's profitability. General economic conditions impact most companies as when the economy is strong, many companies perform well, leading to a positive outlook for shareholder returns. When there are adverse economic conditions, companies may see a downturn in their profitability. Historical company earnings are also an essential factor as shareholders often look to the past performance of the company to make future profitability predictions.

Which of the Following Affects Stockholders' Expectations of Company Profits