Which of the Following Ranges of Returns Would Indicate a Less

question 82

Multiple Choice

Which of the following ranges of returns would indicate a less risky, more stable investment?

• A) -3.0% to 4.0%
• B) 1.5% to 5.75%
• C) .4% to 1.4%
• D) -1.7% to 3.75%

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Definitions:

Current Ratio

A financial ratio indicating how well a company can settle short-term debts with its available assets.

Total Assets

The total of all properties a company owns, encompassing both short-term and long-term assets.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.

Solvency

The ability of a company to meet its long-term financial commitments and continue its operations.