In Vertical Analysis

question 22

Multiple Choice

In vertical analysis:

• A)a base amount is optional.
• B)a base amount is required.
• C)line items from balance sheets are examined only.
• D)line items from income statements are examined only.

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Definitions:

Geometric Average

The nth root of the product of n numbers. It is used to measure the compound rate of return over a given sample period.

Equally-Weighted

An investment strategy where each asset in a portfolio is given the same weight or importance.

Returns

The money made or lost on an investment, usually expressed as a percentage of the investment's initial cost.

Period

A specific span of time during which certain financial or economic activities are measured or observed.