Given the Following Expected Returns and Standard Deviations of Assets

question 75

Multiple Choice

Given the following expected returns and standard deviations of assets B, M, Q, and D, which asset should the prudent financial manager select?

• A) Asset B
• B) Asset M
• C) Asset Q
• D) Asset D

---

Definitions:

Operating Activities

Refers to the primary day-to-day activities of a business related to its production, sale, and delivery of goods and services, impacting the cash flow from operations.

Indirect Method

A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Income Taxes

Taxes imposed by the government on the income of individuals or corporations, calculated as a percentage of taxable income.