The Longest Time Horizons Are Likely to Be Set by

question 33

Multiple Choice

The longest time horizons are likely to be set by

• A) banks.
• B) property and casualty insurance companies.
• C) endowment funds.
• D) banks and endowment funds.
• E) property and casualty insurance companies and endowment funds.

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Definitions:

Average Collection Period

A measure of the average number of days it takes a company to collect payments from its credit sales.

Du Pont Analysis

A method of performance measurement that breaks down return on equity into three component parts: profit margin, asset turnover, and financial leverage.

Pearson's Product-moment

A correlation coefficient that measures the linear correlation between two variables X and Y, giving a value between +1 and -1.

Correlation Coefficient

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