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A Limitation of Comparing a Company's Performance Against Actual Results

question 202

Multiple Choice

A limitation of comparing a company's performance against actual results of last year is that:


Definitions:

Standard Deviation

A measure of the amount of variability or dispersion of a set of values; used in finance to represent the volatility of an investment.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Returns

The profit or loss derived from an investment, often expressed as a percentage of the investment amount.

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