The Maxim Corporation Reported the Following Operating Results for Its

question 46

Multiple Choice

The Maxim Corporation reported the following operating results for its three divisions: South,West,and East. $$\begin{array} { | l | r | r | r | } \hline & \begin{array} { r } \text { South } \\\text { Division }\end{array} & \begin{array} { r } \text { West } \\\text { Division }\end{array} & \begin{array} { r } \text { East } \\\text { Division }\end{array} \\\hline \text { Sales } & \$ 380,000 & \$ 1,700,000 & \$ 2,000,000 \\\hline \begin{array} { l } \text { Operating } \\\text { profits }\end{array} & \$ 20,000 & \$ 50,000 & \$ 100,000 \\\hline \begin{array} { l } \text { Dwisional } \\\text { assets }\end{array} & \$ 200,000 & \$ 625,000 & \$ 800,000 \\\hline\end{array}$$ Which division's profit margin is the highest?

• A) South.
• B) West.
• C) East.
• D) All three divisions are the same.

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Definitions:

Risky Asset

An asset that has a significant degree of uncertainty in its returns, often leading to variability in its investment outcomes.

Normal Distribution

A statistical function that represents the distribution of many types of data; it’s symmetric and describes data that clusters around a mean or average.

Standard Deviation

A statistical measure that quantifies the dispersion of a dataset relative to its mean, used to gauge volatility in financial markets.

Market Performance

An evaluation of how well a particular market is doing, often measured by standard indices.