The Average Serial Correlation,which Indicates If There Is a Relationship

question 36

Multiple Choice

The average serial correlation,which indicates if there is a relationship between yesterday's return and today's return for the 100 largest companies is

• A) positive, and large.
• B) not possible to calculate.
• C) zero.
• D) positive, but small.
• E) negative, but small.

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Definitions:

Gross Method

A method in accounting that logs purchases using the total invoice amount, not considering any cash discounts that are available.

Operating Cycle

The operating cycle is a measure of the time period between the acquisition of inventory by a business and the collection of cash from accounts receivable, indicating the efficiency and effectiveness of its operations.

Wholesaler

A wholesaler is a person or company that sells goods in large quantities at lower prices, typically to retailers for resale to the end consumers.

Gross Margin Ratio

A financial metric calculated by subtracting the cost of goods sold from revenue and dividing that figure by revenue, representing the percentage of sales revenue retained after incurring direct production expenses.