During the Past Twelve Months, the Zenith Corporation Had a Net

question 67

Multiple Choice

During the past twelve months, the Zenith Corporation had a net income of $78,400 What is the return on investment if the amount of the investment is $560,000?

• A)10%
• B)12%
• C)14%
• D)16%

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Definitions:

Risk Tolerance

An individual's or financial entity's capacity to endure loss or volatility in investment value while attempting to achieve investing goals.

Weighted Average Cost

A calculation that takes into account the various costs of goods based on their relative weights, to arrive at an average cost per unit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received but were sacrificed in the pursuit of another option.