Instruction 17-4
the Following Information Is from Two Investment Opportunities

question 41

Multiple Choice

Instruction 17-4
The following information is from two investment opportunities.
$$\begin{array} { l c c } & A & B\\\text { Expectedmonetary } & \$ 900 & \$ 600 \\\text { value }\\\text { standarddeviation } & 100 & 50 \end{array}$$
-Referring to Instruction 17-4,what is the return to risk ratio (RTRR) for Investment B?

• A) 24
• B) 12
• C) 8
• D) 10

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Definitions:

Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

NCI Entry

A journal entry that records the non-controlling interest's share of equity in the consolidated financial statements.

Equity

The value of an owner’s interest in a company, represented by the difference between the company's assets and liabilities.

Dividends

Payments made by a corporation to its shareholder members from the profits or reserves available for distribution, reflecting a share in the company's earnings.