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The Factor That Has an Incorrect Association or Relation with the Earning

Question 4

Multiple Choice

The factor that has an incorrect association or relation with the earning response coefficients (ERC) is:


A) There is a negative association between financial leverage and the ERC
B) Industries with the greatest perceived outcome uncertainty would have the smallest ERCs
C) High-growth firms will have higher ERCs compared to low-growth firms
D) Risk negatively affects the ERC

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