Which of the Following Facts Might Make a Firm's Interval

question 76

Multiple Choice

Which of the following facts might make a firm's interval measure too optimistic?

• A)The cost of raw materials has been decreasing
• B)The average collection period continues to increase
• C)A large component of marketable securities will mature soon
• D)The firm's cash is not earning any interest

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Definitions:

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Positively Correlated

A relationship between two variables in which they move in the same direction; as one increases, the other also increases.

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.

Equal Investment

A strategy where an investor allocates the same amount of money into each investment within a portfolio.