The Higher the Standard Deviation of a Stock's Annual Returns

question 61

Multiple Choice

The higher the standard deviation of a stock's annual returns, the:

• A) lower the level of unique risk.
• B) lower the expected rate of return.
• C) higher the accuracy of predictions of the stock's return for any given year.
• D)wider the dispersion of those returns over time.

Understand the implications of NSF checks and bank service charges on cash management.

Calculate and interpret the Days' Cash on Hand ratio.

Understand the establishment and replenishment of a petty cash fund.

Recognize the importance of maintaining a minimum cash balance (compensating balances).

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Definitions:

New Patterns Of Behavior

Refers to the emergent behaviors and habits of individuals or groups, especially as seen in consumer markets or societal changes.

Brand Extension

The practice of using an established brand name to introduce a new product in a different category.

Colgate's Kitchen Entrees

A real, albeit unsuccessful, product line extension by Colgate, traditionally known for toothpaste, into the food sector.

Innovation Strategy

A plan formulated by an organization to encourage advancements in technology or services, aiming to gain a competitive advantage and meet consumer needs.