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We use the some trends in projecting the stream of future corporate earnings. Which of the following statements is correct ? Group of answer choices

We use the some "trends" in projecting the stream of future corporate earnings. Which of the following statements is correct?

Group of answer choices

"Mean reversion" of earnings means that the company with higher earnings than industry average tend to gain higher earnings in the future.

"Random walk" of earnings means that the company with higher earnings than industry average tend to gain lower earnings in the future.

Industry competition is likely to decrease the speed of mean reversion trend of earnings.

Industry competition is likely to increase the speed of mean reversion trend of earnings.

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