Which of These Is Regarded as A $\bold{disadvantage}$ Of Return on Investment as a Performance Measure?
A)it Is

question 37

Multiple Choice

Which of these is regarded as a $\bold{disadvantage}$ of return on investment as a performance measure?

• A)it is easy to calculate
• B)it encourages overinvestment in assets
• C)it is a percentage measure,not a measure of absolute values
• D)all of the options are disadvantages of return on investment as a performance measure.

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Definitions:

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are managed by professionals.

Investment Charges

Fees and expenses associated with investing in various types of investment vehicles, like mutual funds or stocks.

Public Saving

The difference between a government's total revenue and its total expenditures, reflecting the surplus or deficit in the public sector's budget.

Private Saving

Private saving is the portion of households' and businesses' income that is not spent on consumption or paying taxes, and is instead saved for future use.