One Measure of the Importance of a Publicly Traded Asset

question 16

Multiple Choice

One measure of the importance of a publicly traded asset class in the U.S. economy can be calculated by multiplying the number of publicly traded shares by the current market price of the stock. The result of this calculation is more commonly referred to as:

• A) market capitalization
• B) capitalization rate
• C) price-earnings ratio
• D) earnings-per-share ratio

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Definitions:

Population standard deviation

The square root of the variance of a population, which measures the dispersion of a set of values relative to their mean.

Margin of error

An expression of the amount of random sampling error in a survey's results. It represents the range within which the true value lies, based on a certain confidence level.

Sample mean

The average of a set of data points or observations taken from a larger population.

Checkout times

The duration or period it takes for a customer to complete a purchase transaction from start to finish.