Match the Term with Its Definition

question 55

Essay

Match the term with its definition.Some terms may not be used.
a.Cash conversion period
b.Cost of capital
c.Days in inventory
d.Days in payables
e.Days sales outstanding
f.Lock box
g.Pledged accounts receivable
h.Working capital management
-Accounts receivable used as collateral for a loan

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Weights

In finance, it often refers to the ratios or percentages assigned to different components of a portfolio or an index, indicating their relative importance.

Expected Return

The anticipated profit or loss of an investment, calculated by taking the average of possible returns weighted by their probabilities.

Economic Scenarios

Hypothetical projections used in financial planning and economic modelling to understand the potential impacts of various macroeconomic conditions or policy changes.