Days in Inventory Is a Ratio Measure That Shows How

question 81

True/False

Days in inventory is a ratio measure that shows how quickly a company can collect its receivables.

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Definitions:

Geometric Average Return

The average rate of return on an investment per year, compounded annually, over a specified time period.

Arithmetic Return

The simple average of a series of returns generated over a period of time.

Sharpe Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.

Risk-Free Return

The guaranteed return on an investment with zero risk of financial loss, typically associated with government bonds.