Doogle Corporation Sold a Segment of Its Operations in 2017

question 111

Multiple Choice

Doogle Corporation sold a segment of its operations in 2017 and suffered an loss in 2018 that was both unusual and infrequent.Which of the following would be the most useful in attempting to predict Doogle's performance for 2019?

• A)Doogle's income from continuing operations in 2017 and 2018.
• B)Doogle's net income in 2017 and 2018.
• C)Doogle's total assets at the end of 2018.
• D)Doogle's retained earnings at the end of 2018.

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Definitions:

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the values in a data set are.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, marking preferences of equal utility.

Risk-Averse

A characteristic describing an investor or decision-maker who prioritizes avoiding loss over making a gain, typically favoring safer investments.

Mean-Standard Deviation Graph

The mean-standard deviation graph is a visual representation used in finance to display expected returns (mean) of an investment against its risk (standard deviation).