An Investment Produced Annual Rates of Return of 7%, -14

question 26

Multiple Choice

An investment produced annual rates of return of 7%, -14%, 20% and 4% respectively over the past four years. What is the standard deviation of these returns?

• A) 12.1%
• B) 14.0%
• C) 1.5%
• D) 7.0%

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Definitions:

Beginning Inventory

The value of goods available for sale at the start of an accounting period, serving as an important factor in calculating cost of goods sold.

Cost of Goods Sold

The total cost of materials and labor directly tied to the production of goods sold by a company during a specific period.

Cost of Goods Available for Sale

The total cost of inventory that a company has in stock and is available to be sold, including both beginning inventory and purchases made.

Sales Discount

A reduction in the selling price offered by a seller to a buyer, usually to encourage prompt payment.