Given Forecast Errors of 5, 0,−4, and 3, What Is

question 56

Multiple Choice

Given forecast errors of 5, 0,−4, and 3, what is the mean absolute deviation?

• A)4
• B)3
• C)2.5
• D)2
• E)1

Compute the operating cycle of a company and assess its significance in financial analysis.

Understand the calculation and implications of accounts receivable and accounts payable metrics.

Calculate and interpret inventory turnover and average sale period.

Analyze various financial ratios including total asset turnover, debt-to-equity ratio, and equity multiplier.

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Definitions:

Liquidity Risk

The risk of loss to an investor from the inability to sell a security to another investor at a price close to its true value.

Maturity Risk

The risk associated with the time until the bond or other fixed income instrument pays its principal back. It can affect interest rates and investment value.

Default Risk

The likelihood that a borrower will fail to meet the obligations of paying back debt, impacting the safety of the investment.

Federal Government Debt

The total amount of money that the national government has borrowed through various means, including Treasury bonds, bills, and notes.