The Operating Cycle Is the Time Span Required for a Business

question 96

True/False

The operating cycle is the time span required for a business to repay its long-term liabilities.

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Definitions:

Risky Assets

Assets that have a higher degree of uncertainty in their returns, often with the potential for higher gains but also higher losses.

Minimum-variance Portfolio

An investment portfolio designed to have the lowest possible risk (variance) for its expected return.

Global Minimum Variance Portfolio

An investment portfolio strategy that seeks to minimize volatility by allocating assets in a way that produces the lowest possible variance.

Standard Deviations

A statistical measure that quantifies the dispersion or variance of a set of data points from their average, widely used in the finance sector to gauge the volatility of investment returns.