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Endnotes

  1. To illustrate, a firm with percentage changes in earnings of +5%, −5% and +5% over three years will be classified as having more stable earnings than a firm that reports percentage changes in earnings of +5%, +15% and +25% over three years.

  1. Lang, Larry H. P., and René M. Stulz, 1994, Tobin's q, corporate diversification, and firm performance, Journal of Political Economy, v102, 1248–1280.


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