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nydimaria [60]
3 years ago
8

What does a low asset turnover compared to the industry imply? The investment in assets may be too high. Sales are higher than a

verage. The investment in assets is too low. Net income is low relative to the investment in assets.
Business
1 answer:
Finger [1]3 years ago
3 0

Answer:

A low asset turnover compared to the industry implies Net income is low relative to the investment in assets.

Explanation:

Asset turnover is the ratio of total sales or revenue to average assets. It is a measure used to gauge how effectively companies are using their assets to generate sales.

Higher turnover ratios mean the company is using its assets more efficiently. Lower ratios mean that the company isn't using its assets efficiently and most likely have management or production problems.

The asset turnover ratio measures the value of a company's sales or revenues relative to the value of its assets

If a company has a low asset turnover ratio, it indicates it is not efficiently using its assets to generate sales.

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C. On average smaller stock have lower return than larger stock.

Explanation:

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On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.

A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

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The standard deviation should decrease because there is now a lower probability of the more extreme outcomes. The expected rate of return on the auto stock is now

<h3>How is the variance calculated?</h3>

[0.3 × (–8%)] + [.4 × 5%] + [.3 × 18\%] = 5%[.3×(–8%)]+[.4×5%]+[.3×18%] = 5%

The variance is

[.3× (–8 – 5)^2] + [.4× (5 – 5)^2] + [.3×(18 – 5)^2] = 101.4

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https://brainly.ph/question/13423233

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4 0
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