All other things being equal, we would not choose the investment with the __________ accounting rate of return.
A) lowest
B) highest
C) equivalent
D) most reasonable

Question

Quizplus · Accepted Answer

The accounting rate of return (ARR) is a measure of the expected profitability of an investment. Generally, investors seek to maximize their returns, so they would not choose the investment with the lowest ARR among available options, as it indicates the lowest expected profitability.

All Other Things Being Equal, We Would Not Choose the Investment