The Annual Returns (In Percent)for a Sample of Stocks in the Technology

question 44

Multiple Choice

The annual returns (in percent) for a sample of stocks in the technology industry over the past year are as follows: The average return is closest to:

• A)-6.6
• B)-5
• C)0
• D)2.8

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Definitions:

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its treasury.

Earnings Per Share

A financial metric that measures the amount of net income earned per share of a company's outstanding stock.

Stockholders' Equity

The remaining interest in a company's assets once liabilities have been subtracted, signifying the ownership stake.

Earnings Per Share

A measure of a company's profitability, calculated by dividing the company's net income by the number of outstanding shares of its common stock.