The Rate of Return on Net Sales Is Calculated As

question 37

Multiple Choice

The rate of return on net sales is calculated as:

• A)gross profit / net sales.
• B)operating income / net sales.
• C)dividends paid during the year / net sales.
• D)net income / net sales.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; it indicates the risk associated with a security’s returns in comparison to the market's returns.

Portfolio

A collection of investments held by an individual or an institution which may include stocks, bonds, real estate, and other financial assets.

Securities

Assets in the form of stocks representing part ownership in companies on the stock exchange, bonds signifying creditor status with governments or businesses, or options that offer the possibility of ownership.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market as a whole.