An Investment with a Beta of 4

question 174

Multiple Choice

An investment with a beta of 4.0 means that the investment has four times the

• A)average expected rate of return of the market portfolio.
• B)risk of all similar investments.
• C)level of nondiversifiable risk as the market portfolio.
• D)level of diversifiable risk as the market portfolio.

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Definitions:

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is a financial accounting provision made for receivables that may not be collectible, estimating the portion of outstanding receivables likely to be uncollectable.

Credit Balance

A situation where the amount of credits in an account exceeds the debits, often seen as a positive balance in financial and bank accounts.

Outstanding Receivables

The amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.