Shown Below Is a Correlation Table Showing Correlation Coefficients Between

Multiple Choice

Shown below is a correlation table showing correlation coefficients between stock price, earnings per share (EPS) , and the price/earnings (P/E) ratio for a sample of 19 publicly traded companies. Which of the following statements is false?

A) EPS is the best predictor of stock price.
B) The strongest correlation is between EPS and stock price.
C) There is a weak negative association between P/E and EPS.
D) PE is the best predictor of stock price.
E) The weakest correlation is between P/E and EPS.