Which of the following is a reason why it is difficult for investors to interpret the relation between value creation and management ownership concentration using market-to-book value ratio?
A) The market value to its book value is a subjective measure of value creation.
B) The market-to-book ratio is affected the volatility in book values.
C) The market-to-book ratio measures more than management effectiveness.
D) The market-to-book ratio is only an indicator of market-wide risk.
Correct Answer:
Verified
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