Which of the Following Equations Is INCORRECT

question 90

Multiple Choice

Which of the following equations is INCORRECT?

• A)Var(
• R)=
• B)SD(
• R)=
• C)Var(
• R)= ^{ΣR PR} × (R - E[R])2
• D)E[R] = ^{ΣR PR} × R

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Definitions:

Average Collection Period

A measure of how long it takes a firm to convert a credit sale (internal store credit, not credit card sales) into a usable form (cash).

Quick Ratio

A financial metric that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventories.

Goods Sold

Goods sold refers to the products that a company has provided to customers in exchange for payment; it is often used in the context of calculating revenues and inventory turnover.

Current Ratio

This is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.