Adding 1 to Return Produces The

question 7

Multiple Choice

Adding 1 to return produces the:

• A) arithmetic mean.
• B) return relative.
• C) cumulative wealth index.
• D) geometric mean.

---

Definitions:

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Expenses

Costs incurred in the process of earning revenue, including operational expenses like rent, utilities, and payroll.

Stockholders' Equity

Shareholders' Equity reflects the stake of owners in a company, determined by subtracting the firm's total liabilities from its total assets.

Expense

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.