A Method That Allocates an Equal Portion of the Total

question 19

Multiple Choice

A method that allocates an equal portion of the total depreciation for a property,plant and equipment asset to each unit produced is called

• A)Accelerated depreciation
• B)Double-declining-balance depreciation
• C)Straight-line depreciation
• D)Units-of-production depreciation
• E)Capital cost allowance

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Definitions:

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.

Correlation

A statistical measure indicating the degree to which two variables' movements are associated with each other, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).

Time Diversification

An investment strategy that spreads exposure across different periods to reduce risk associated with market volatility.