A Company's Southwest Segment Had Revenues of $12 Million,operating Income

question 55

Multiple Choice

A company's Southwest segment had revenues of $12 million,operating income of $2 million,and average total assets of $3 million.The Southwest segment return on assets is:

• A)42.85%
• B)41.67%
• C)25.00%
• D)16.67%
• E)66.67%

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Definitions:

Small-Firm Effect

The small-firm effect refers to the historical trend where smaller firms, in terms of market capitalization, have achieved higher risk-adjusted returns than larger companies.

Random Price Movements

Refers to the unpredictability in the price changes of securities in financial markets, often driven by a variety of factors without a clear pattern.

Technical Analysis

An approach to assess securities by examining statistical data produced by market behavior, including historical prices and trading volumes.

Technical Analysis

The study of historical market data, including price and volume, to forecast future market behavior.