Directions: Choose the Best Answer Based on the Information You

question 13

Multiple Choice

Directions: Choose the best answer based on the information you read in Chapter 14. ​ Identify the simple subject: The black and white puppy is my favorite.

• A)black
• B)black and white
• C)black and white puppy
• D)puppy

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Definitions:

ROE

A metric indicating how effectively a company uses shareholders' funds to generate profits.

Financial Leverage

The use of borrowing to increase the potential return of an investment.

Beta Coefficient

This is a measurement of the volatility of a stock or portfolio in comparison to the market as a whole.

Market Risk

The possibility of experiencing financial losses in investments because of events that impact the whole market or the overall economy.