On a Finance Exam,15 Accounting Majors Had an Average Grade

question 28

Multiple Choice

On a finance exam,15 accounting majors had an average grade of 90. On the same exam,7 marketing majors averaged 85,and 10 finance majors averaged 93. What is the weighted mean for all 32 students taking the exam?

• A)89.84
• B)89.33
• C)89.48
• D)10.67

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Definitions:

Profitability Index

A financial tool that calculates the ratio of the present value of future cash flows generated by an investment to the investment’s initial cost, used to assess project attractiveness.

Profitability Index

A financial metric that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.

Required Return

The expected return that investors seek from an investment, considering its risk level and the opportunity cost of forgoing other investments.

Profitability Index

A calculation that determines the relative profitability of an investment, expressed as the ratio of the present value of future cash flows over the initial investment cost.