You have calculated the historical dollar-weighted return, annual geometric average return, and annual arithmetic average return. You always reinvest your dividends and interest earned on the portfolio. Which method provides the best measure of the actual average historical performance of the investments you have chosen?
A. dollar-weighted return
B. geometric average return
C. arithmetic average return
D. index return
B. geometric average return
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A country's size and location are considered as its physical resources
Indicate whether the statement is true or false
The simplest type of measuring system is the:
a. interval scale. b. ratio scale. c. nominal scale. d. ordinal scale.
How is the profitability index calculated?
A) The present value of the net cash flows minus the initial investment. B) The present value of the net cash flows /plus the initial investment. C) The present value of the net cash flows divided by the initial investment. D) The initial investment divided by the present value of the net cash flows.
________ decisions focus on how a company will spend its financial resources on long-term projects that ultimately determine whether the firm successfully creates value for its owners.
A) Investment B) Financing C) Working capital D) Risk management