(Net Income ∕ Net Sales)

question 77

Multiple Choice

(Net income ∕ Net sales)

• A) Operating profit margin
• B) Net profit margin
• C) Operating return on assets
• D) Return on total assets
• E) Return on equity

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Definitions:

Rates of Return

Rates of return measure the net gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Standard Deviations

A measure of variability that quantifies the extent of deviations of a set of data points from their mean.

N Risky Securities

A term referring to a collection of investments that carry a significant level of risk, where 'N' indicates the number or variety of such risky assets.

Risk Level

The potential for losing something of value, measured in the context of investment as the uncertainty regarding the return or the possibility of losing some or all of the original investment.