A Stock Produced Annual Returns of 5,-21,11,42,and 4 Percent Over

question 33

Multiple Choice

A stock produced annual returns of 5,-21,11,42,and 4 percent over the past five years,respectively.What is the geometric average return?

• A)5.78 percent
• B)6.03 percent
• C)6.34 percent
• D)7.21 percent
• E)8.20 percent

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Definitions:

Conversion Costs

The total expenses of direct labor together with manufacturing overheads spent in transforming raw materials into completed products.

Process Cost Accounting System

A bookkeeping mechanism for distributing costs among similar items that are produced in large scale and without interruption.

Equivalent Units of Production

A concept in cost accounting used to assign costs to partially completed goods, calculated by taking the number of units in the production process and converting them into a number of completed units.

Conversion Cost

The combined total of labor and manufacturing overhead costs necessary to convert raw materials into finished products.