The Qualitative Characteristics of Comparability Refers to Being Able to Compare

question 17

Multiple Choice

The qualitative characteristics of comparability refers to being able to compare:

• A)The financial report of an entity with its reports for previous periods - Yes The financial report of an entity with the report of another entity - No
• B)The financial report of an entity with its reports for previous periods - No The financial report of an entity with the report of another entity - No
• C)The financial report of an entity with its reports for previous periods - Yes The financial report of an entity with the report of another entity - Yes
• D)The financial report of an entity with its reports for previous periods - No The financial report of an entity with the report of another entity - Yes

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Definitions:

Serial Correlation

The relationship between sequential data points in a time series, indicating that a value in the series is statistically correlated with its predecessors.

Mutual Funds

Investment funds that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Hedge Funds

Private investment funds that use a range of strategies to achieve returns, including diversification, leveraging, and derivatives.

Treynor Measure

A performance metric for determining how well an investment portfolio compensates the investor for taking risk, relative to the market as a whole.