In a Statement of Cash Flows,interest Received from Sources Other

question 9

Multiple Choice

In a statement of cash flows,interest received from sources other than a company's investments would be classified as cash inflows from:

• A) lending activities.
• B) operating activities.
• C) investing activities.
• D) financing activities.

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Definitions:

Covariance

A statistical measure that indicates the extent to which two variables change together; if the covariance is positive, the variables move together, while a negative covariance means they move inversely.

Securities' Returns

The profit or loss derived from investing in a security, including dividends, interest, and capital gains.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Portfolio Opportunity Set

The expected return–standard deviation pairs of all portfolios that can be constructed from a given set of assets.