Downtown Industries Common Stock Had Returns of 8

question 84

Multiple Choice

Downtown Industries common stock had returns of 8.2,12.2,11.5,and 6.3 percent,respectively,over the past four years.What is the standard deviation of these returns?

• A)2.07 percent
• B)2.38 percent
• C)2.41 percent
• D)2.59 percent
• E)2.82 percent

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Definitions:

Retained Earnings

The portion of net income not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, including any adjustments, showing the final balances to be used for preparing financial statements.

Income Statement

Financial statement that displays a company’s revenues and expenses, and ultimately its profit or loss, over a particular period, offering insight into its operational efficiency.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for errors, accruals, and deferrals, used to verify the balance of debits and credits.