Return on Sales Can Be Computed by Multiplying Return on Investment

question 56

True/False

Return on sales can be computed by multiplying return on investment by the capital turnover.

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Definitions:

Alpha Generated

A measure of the additional return an investment earns above a benchmark, indicating the value added by a portfolio manager's investment decisions.

Capital Allocation

The process of distributing financial resources among various projects or units within a company or portfolio to maximize profitability or value.

Alpha Generated

The excess returns of a portfolio over the benchmark's returns, attributable to the skill of the portfolio manager rather than the market movement.

Regression Equations

Statistical methods used to estimate the relationships among variables, often employed to predict future trends based on historical data.