The Time Series Component Which Reflects Gradual Shifts or Movements

question 16

Multiple Choice

The time series component which reflects gradual shifts or movements to relatively higher or lower values over a longer period of time is a(n) _____ component.

• A) trend
• B) seasonal
• C) cyclical
• D) irregular

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Definitions:

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, assigning weights accordingly.

Cost of Capital

The expected returns an investor requires to make an investment worthwhile, often used as a benchmark to evaluate the viability of investment projects.

Basic Assumption

A fundamental premise or underlying principle that is taken for granted in the context of a particular model, theory, or methodology.

Capital Structure

The composition of a company's funding through a mix of debt, equity, and other securities to finance its operations and growth.