When Measuring the Quarterly Portfolio Return, a Withdrawal near the Beginning

question 27

Multiple Choice

When measuring the quarterly portfolio return, a withdrawal near the beginning of the quarter requires

• A) no adjustment to the values.
• B) a reduction of the beginning and ending values.
• C) a reduction of the beginning value.
• D) a decrease of the beginning and increase in the ending values.

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Definitions:

Inventory Account

An account on the balance sheet that reports the value of a company's goods that are unsold at the end of the accounting period.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Cash Dividends

Profits paid out to shareholders by a corporation from its earnings in the form of cash.

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, including issuing shares, repaying loans, and paying dividends.