Use the Table for the Question(s)below

question 95

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-The standard deviation of the returns on Stock A from 2000 to 2009 is closest to:

• A)33.2%
• B)16.4%
• C)31.5%
• D)11.0%

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Definitions:

Equity Method

An accounting technique used to assess the profits earned by a company through its investment in another company, by reporting the income based on the investee's net income and changes in equity.

Eliminate Unrecognized

A process in accounting to remove unrealized gains or losses from the books, often in the context of consolidation accounting to avoid double counting.

Intra-entity Gross Profit

The profit realized from transactions conducted within different divisions or segments of the same company, often eliminated in consolidated reporting.

Eliminate Intra-entity Transfer

The process of removing transactions between entities within a single organization from the consolidated financial statements to prevent double counting.