If the Profit Margin for a Division Is 8% and the Investment

question 121

True/False

If the profit margin for a division is 8% and the investment turnover is 1.20, the rate of return on investment computed would be 6.7%.

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Definitions:

EAFE Index

The Europe, Australasia, Far East index is a widely used index of non-U.S. stocks.

Weighting

The process of assigning different levels of importance or emphasis to various elements in a calculation or analysis.

Total Return

The overall return on an investment over a certain period, accounting for both capital gains and dividends or interest.

British Securities

Financial instruments such as stocks, bonds, or other investment vehicles, traded or available in the UK market.