The ____ Ratio Is Based on the Principle That a High-Risk

question 178

Multiple Choice

The ____ ratio is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns.

• A) return on owners' equity
• B) risk-return
• C) Earnings
• D) investment-to-equity
• E) quick return

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Definitions:

Ratios

Metrics derived from a financial analysis that provide insights into a company's performance, liquidity, profitability, and solvency.

Constant

A value that does not change and remains fixed under specified conditions.

Independent Samples

Refers to two or more groups of samples that are selected from a population, where the selection of a sample does not influence the selection of the other samples.

Pre- And Post-Test

Assessments conducted before and after an intervention or educational program to measure the effectiveness of the program.