An Estimate Is

question 6

Multiple Choice

An estimate is

• A)efficient if it has the smallest variance possible.
• B)a nonrandom number.
• C)unbiased if its expected value equals the population value.
• D)another word for estimator.

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Definitions:

Book Value Per Share

A measure of a company's equity value as per its financial statements, divided by the number of outstanding shares.

Common Stock

Equity securities that represent ownership in a company, entitling the shareholder to voting rights and a share of the company's profits in the form of dividends.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its business or to pay debt.

Market/Book Ratio

A financial metric comparing a company's market value to its book value, indicating how much investors are willing to pay above the net asset value.