Which of the Following Statements Is NOT True

question 75

Multiple Choice

Which of the following statements is NOT true?

• A) Gross working capital is the funds invested in a company's current liabilities.
• B) Net working capital (NWC) refers to the difference between current assets and current liabilities.
• C) Working capital efficiency refers to the length of time between when a working capital asset is acquired and when it is converted into cash.
• D) Working capital management involves making decisions regarding the use and sources of current assets.

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Definitions:

Sharpe Ratio

A metric used to evaluate the risk-adjusted return of an investment portfolio, indicating how much excess return you receive for the extra volatility of holding a riskier asset.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.

Standard Deviation

A statistical measure of the dispersion or spread in a set of data, indicating how much variation exists from the average.