A Portfolio Has an Average Return of 14

question 32

Multiple Choice

A portfolio has an average return of 14.2 percent and a standard deviation of 12.85 percent.Given this,you should expect to lose at least ________ percent on an annual basis once every century.

• A) −19.53
• B) −17.24
• C) −15.69
• D) −1.710
• E) −1.550

Calculate inventory turnover rates.

Understand and calculate working capital ratios.

Understand and apply the formula for calculating the relationship of net income to net sales.

Calculate the inventory turnover rate.

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Definitions:

Fiscal Year

A one-year period used for financial reporting and budgeting that may not align with the calendar year.

Internal Rates Of Return

The financial rate that ensures a project's cash flows have a net present value of exactly zero.

Maximum Discount Rate

The highest interest rate set by a central bank to lend money to financial institutions.

Internal Rate Of Return

A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.