Which of the Following BEST Describes Trend Analysis

question 67

Multiple Choice

Which of the following BEST describes trend analysis?

• A)Showing each figure as a percentage of some other amount,such as total assets
• B)Showing each year's figures as a percentage of amounts for a base year
• C)Comparing a company's financial figures with other companies that are leaders
• D)Calculating key ratios to evaluate performance

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Definitions:

Standard Deviation

A measure of the dispersion or spread of a set of values, indicating how much the values differ from the average of the set.

Coefficient Of Correlation

A statistical measure that indicates the extent to which two variables fluctuate together. A value closer to 1 or -1 indicates a stronger relationship.

Decreases

To become smaller or less in size, amount, intensity, or degree.

Portfolio Returns

The gain or loss on an investment portfolio, measured over a specific period of time.