The Past Five Monthly Returns for PG Company Are 3

question 48

Multiple Choice

The past five monthly returns for PG Company are 3.25 percent, −1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?

• A) 1.366 percent
• B) 1.608 percent
• C) 3.278 percent
• D) 3.858 percent

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Definitions:

Economic Entity Assumption

An assumption that requires that the activities of the entity be kept separate and distinct from the activities of its owner and all other economic entities.

Economic Events

Activities or occurrences that have a significant financial impact on the businesses or the economy as a whole.

Unit of Accountability

A fundamental concept in accounting and finance, referring to the smallest measurable amount for which financial activities or transactions are recorded and reported.

Insurance Expense

The cost incurred by a business to insure its assets, operations, or liabilities over a certain period.