The Calculation Sales/average Total Assets Is the Formula for Which

question 27

Multiple Choice

The calculation sales/average total assets is the formula for which of the following ratios

• A)Return on assets
• B) Profit margin
• C) Asset turnover
• D) Asset usage

---

Definitions:

Dollar Exposure

The extent to which a company or investor is affected by changes in the value of the U.S. dollar against foreign currencies.

Call Delta

An option's sensitivity measure that indicates how much the price of the call option is expected to change in response to a one-point change in the price of the underlying asset.

Two-State

Usually references a model involving two possible outcomes or states, often used in finance to model investment under uncertainty.

Hedge Ratio

The ratio used to calculate the number of derivatives needed to hedge a particular risk exposure.