The abnormal net income model predicts a negative relationship between economic profits and stock prices.

Name: The abnormal net income model predicts a negative relationship between economic profits and stock prices.
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Question

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The abnormal net income model actually predicts a positive relationship between economic profits and stock prices, as higher economic profits indicate a company is performing well, which typically leads to an increase in its stock price.

The Abnormal Net Income Model Predicts a Negative Relationship Between