When Looking at Measures of Risk and Return, the Notation

question 60

Multiple Choice

When looking at measures of risk and return, the notation "σ" represents ____.

• A) risk
• B) return
• C) standard deviation
• D) probability

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid, regardless of when the transaction occurred.

Financial Statements

Papers presenting a snapshot of a firm's financial health, which include the balance sheet, income statement, and cash flow statement.

Accurate

The quality of being precise, correct, and free from errors.

Adjust Expense

The process of allocating expenses incurred in one period to the correct period, often through adjusting entries in the accounting records.