A Company Had Net Income of $40,000, Net Sales of $300,000

question 150

Multiple Choice

A company had net income of $40,000, net sales of $300,000, and average total assets of $200,000. Its profit margin and total asset turnover were respectively:

• A) 13.3%; 0.2.
• B) 13.3%; 1.5.
• C) 2.0%; 1.5.
• D) 1.5%; 0.2.
• E) 1.5%; 13.3.

Identify the influence of behavioral biases on investment decisions and market outcomes.

Understand the impact of insider trading and regulatory disclosures on market efficiency.

Assess the performance of mutual funds and the implications for investment choice.

Interpret the results of empirical research studies on market efficiency and stock performance.

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Definitions:

Years Ago

A phrase used to denote a specific amount of time in the past counting backward from the current date.

Economic Sectors

The distinct areas of economic activity within an economy, such as agriculture, manufacturing, and services, each contributing to the overall economy.

Basic Sector

Economic activities that provide goods and services beyond the local market, contributing to a region's economic growth by bringing in external income.

Primary Sector

The sector of an economy involving the extraction and collection of natural resources, such as agriculture, forestry, fishing, and mining.