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Shown below is a correlation table showing correlation coefficients between stock price, earnings per share (EPS),...

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.

1. What is the correlation between stock price and EPS?
2. what is the correlation between stock price and P/E?
3. What is the correlation between EPS and P/E?

                         stock price       EPS         P/E
Stock price        1.000
EPS                     0.875             1.000
P/E                      0.323            -0.111     1.000

Math   Statistics-And-Probability   
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