________, a measure of correlation between returns on investment i and returns on investment j is used to reflect risk
Fill in the blank with correct word.
Answer: Covariance
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All of the following are weaknesses of the payback period EXCEPT:
A) a disregard for cash flows after the payback period. B) only an implicit consideration of the timing of cash flows. C) the difficulty of specifying the appropriate payback period. D) it uses cash flows, not accounting profits.
The current account shows ________
A) international transactions that involve currently produced goods and services B) the flow of capital between the U.S. and other countries C) payments between the U.S. and other countries D) current IOUs of the U.S.
In Mazetti v. Armour, a court in 1913 held that a food producer must provide food safe for human consumption, even if there is no privity of contract. Liability was based on:
a. misrepresentation b. caveat emptor c. UCC Section 2-314 d. implied warranty of safety e. express warranty of safety
Ostermeyer Corporation is considering a project that would require an initial investment of $247,000 and would last for 7 years. The incremental annual revenues and expenses for each of the 7 years would be as follows (Ignore income taxes.): Sales $198,000 Variable expenses 46,000 Contribution margin 152,000 Fixed expenses: Salaries$22,000 Rents 32,000 Depreciation 33,000 Total fixed expenses 87,000 Net operating income $ 65,000 At the end of the project, the scrap value of the project's assets would be $16,000.Required:Determine the payback period of the project.
What will be an ideal response?