Return on Assets Will Likely Differ Across Firms and Across

question 80

Short Answer

Return on assets will likely differ across firms and across time.Three elements of risk that will help explain these differences are ________________________________________,cyclicality of sales and stage and length of product life cycle.

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Definitions:

Positive Relationship

A correlation where two variables move in the same direction, meaning that as one variable increases, the other also increases.

Pablo Picasso

A Spanish painter, sculptor, printmaker, and influential artist of the 20th century, known for co-founding the Cubist movement.

Derived Demand

The demand for a resource that depends on the demand for the products it helps to produce.

Stock Options

Financial derivatives that grant the holder the right, but not the obligation, to buy or sell a stock at a specified price within a certain time frame.