NARRBEGIN: Stock Returns -What Is the Variance of Returns for Stock A

question 58

Multiple Choice

NARRBEGIN: Stock Returns

-What is the variance of returns for stock A?

• A) .00607
• B) .00653
• C) .00655
• D) .00506

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Definitions:

Asset Turnover

A financial ratio that measures how efficiently a company uses its assets to generate sales, calculated by dividing total revenues by average assets.

Net Sales

The revenue from sales transactions after deducting returns, allowances, and discounts.

Net Income

The total profit of a business after all expenses and taxes have been subtracted from revenue.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.