A Mining Share for a Company Listed on the ASX

question 20

Multiple Choice

A mining share for a company listed on the ASX produced returns of 19 per cent,27 per cent,and -38 per cent over three of the past four years.The arithmetic average for the past four years is 7 per cent.What is the standard deviation of the stock's returns for the four-year period?

• A)11.63 per cent
• B)15.94 per cent
• C)19.70 per cent
• D)26.25 per cent
• E)30.21 per cent

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Definitions:

Carrying Amount

The recorded cost of an asset in a company's financial statements, less any accumulated depreciation or amortization.

Allowance for Doubtful Accounts

A contra-asset account used to reduce accounts receivable to its net realizable value by estimating uncollectible debts.

Bad Debts Expense

An expense recognized when it is probable that receivables will not be collected and is considered a cost of doing business on credit.

Allowance for Doubtful Accounts

A contra asset account that represents estimated uncollectible amounts from customers, reducing the gross receivables to their net realizable value.