Kids Toy Co

question 40

Multiple Choice

Kids Toy Co. has had total returns over the past five years of 0%, 7%, -2%, 10%, and 12%. What was the mean return on this stock and its variability in percent return?

• A) 6.75%; 6.15%.
• B) 5.40%; 6.15%.
• C) 6.75%; 6.33%.
• D) 5.40%; 5.50%.

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for a tangible asset over each year of its useful life.

Units-Of-Production

Units-of-production is a method of depreciation that allocates the cost of an asset over its useful life based on the number of units it produces, reflecting wear and use more accurately.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to use and time.

Salvage Value

The predicted sale value of an asset at the end of its operational life.