Return on Investment Is Computed by Dividing Income by

question 47

Multiple Choice

Return on investment is computed by dividing income by

• A)contribution margin.
• B)inventory turnover.
• C)assets invested.
• D)average assets employed.

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Definitions:

Single-Index Structure

A model used in finance to describe the returns of a portfolio or asset as a function of a single market index.

Firm-specific Variances

Variability in a company's stock price or financial performance that is attributable to internal factors unique to the company, rather than broader market influences.

Macroeconomic Factor

A Macroeconomic Factor is a condition or variable that impacts the economy at a broad scale, including inflation, unemployment, and economic growth rates.

Single-Index Structure

A model used in finance to describe the returns of a portfolio using a linear relationship between the return of the portfolio and the return of a market index.