To Determine His Company's Return on Assets, Harold Should Divide

question 42

Multiple Choice

To determine his company's return on assets, Harold should divide the firm's operating profits by

• A) sales.
• B) current liabilities.
• C) total assets.
• D) current assets.

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Definitions:

Capital Gains Yield

reflects the price appreciation of a security or an investment, showing the percentage increase in the investment's value over a period.

Deviations

Instances of departing from an established course or accepted standard.

Average Return

The sum of returns accrued over a period divided by the number of periods to assess investment performance.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an investment, market, or market sector changes.