Which of the Following Changes Would Increase Return on Investment

question 14

Multiple Choice

Which of the following changes would increase return on investment (ROI) ?

• A)Decrease sales and expenses by the same percentage.
• B)Increase total assets.
• C)Increase sales and expenses by the same percentage.
• D)Decrease sales and expenses by the same dollar amount.

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Definitions:

Specified Price

A pre-determined price agreed upon by all parties involved in a transaction.

Strips And Straps

Options strategies that involve combining puts and calls with the same expiration date but different strike prices to profit from movements in the underlying asset's price.

Straddles

An investment strategy that involves purchasing both a call and put option on the same asset with the same strike price and expiration date, used to bet on volatility without predicting direction.

Asian Call Option

A type of call option where the payoff depends on the average price of the underlying asset over a specified period rather than at maturity.