The Five Basic Principles of Finance Include All of the Following

question 105

Multiple Choice

The five basic principles of finance include all of the following except:

• A) Cash flow is what matters.
• B) Money has a time value.
• C) Risk requires a reward.
• D) Incremental profits determine value.

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Definitions:

Regression Parameters

The coefficients in a regression equation that represent the relationship between independent variables and a dependent variable.

Standard Error Of Estimate

A measure used in statistics to indicate the accuracy of a prediction or how much sample data deviates from the actual population.

T-Test

A type of statistical test that is used to compare the means of two groups to determine if the differences between them are statistically significant.

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables; its value ranges from -1 to 1.