The Depreciation Method That Does Not Use Residual Value in Calculating

question 35

Multiple Choice

The depreciation method that does not use residual value in calculating the first year's depreciation expense is

• A) straight-line
• B) units-of-production
• C) double-declining-balance
• D) none of the above

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Definitions:

Portfolio Standard Deviation

A measure of the dispersion of returns from a portfolio, indicating the portfolio's risk.

Cyclical Stock

Shares of companies whose earnings and stock price are heavily influenced by the ups and downs of the economy at large.

Countercyclical Stock

A type of stock whose performance is inversely related to the overall state of the economy; it tends to perform well during economic downturns.

Expected Return

Expected Return is the anticipated amount of profit or loss an investment is likely to generate, accounting for both the risk of the investment and the time value of money.