The Trend Analysis Report of Marshall,Inc

question 107

Multiple Choice

The trend analysis report of Marshall,Inc.is given below (in millions) :

Which of the following is a correct conclusion from the above analysis?

• A)Net income for 2016 has increased by 115% over that for 2014.
• B)Net income for 2016 has decreased by 15% over that for 2014.
• C)Net income for 2016 has decreased by 115% over that for 2014.
• D)Net income for 2016 has increased by 15% over that for 2014.

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Definitions:

Capital Asset Pricing Model

A theory detailing how systematic risk correlates with the expected return for investments, mainly in the stock market.

Stock Correlation

A statistical measure that describes how the movements of two stocks are related to each other.

Risky Assets

Assets that carry a significant degree of risk of loss, often associated with higher potential returns as compensation for the risk taken.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of investing in the stock market.