An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called Blank______.Multiple choice question.return on salesearnings per sharereturn on equitythe current ratio
Question
An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called Blank______.Multiple choice question.return on salesearnings per sharereturn on equitythe current ratio
Solution
The correct answer is "return on equity". This is a measure of financial performance calculated by dividing net income by shareholders' equity. It is considered an indirect measure of risk as it tells us how much a firm earned for each dollar invested by its owners.
Similar Questions
Multiple Choice QuestionOne type of risk that investors in stock take is a decrease in Blank______.Multiple choice question.valueavailable creditcampaigns by the companyinterest rate
Direct investment exposes a firm to Blank______ risk.Multiple choice question.significantminimalsharedvery little
Multiple Choice QuestionThe price of a share of stock divided by the corporation's earnings per share of stock is called Blank______.Multiple choice question.price-earnings ratioG.E. ratioearnings per shareafter-tax ratio
Multiple Choice QuestionFluctuation of prices due to the behaviors of investors in the marketplace is known as Blank______.Multiple choice question.investment riskmarket riskinflation riskfailure risk
Multiple Choice QuestionA corporation's earnings divided by the number of outstanding shares of a firm's common stock is called Blank______.Multiple choice question.benchmark ratioG.E. ratioprice-earnings ratioearnings per share
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.