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:

Initial Value Method

An accounting method that records an investment at its original cost without adjusting for changes in market value or the investee's earnings, except to recognize impairments.

Intra-entity Transfers

Transactions occurring between divisions or units within the same company.

Income Taxes

Taxes levied by governments on the income generated by individuals and businesses within their jurisdiction.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods/services at a profit.