The Annual Rate of Return Is Computed by Dividing Expected

question 157

True/False

The annual rate of return is computed by dividing expected annual net income by average investment.

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Definitions:

Stated Interest Rate

The annual interest rate declared on a bond or loan, not accounting for compounding or the effect of any fees.

Chi-square

A statistical test used to examine the differences between categorical variables in a contingency table.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution.