Rate-based statistics represent summary cash flows, and these summaries tend to lose which two important details?
A) The investment size and cash inflows that occur after the rather arbitrary testing period
B) The investment size and the cash inflows that occur before the testing period
C) The investment size and the cash outflows that occur before the testing period
D) The investment size and the cash inflows that occur during the testing period

Question

Quizplus · Accepted Answer

Rate-based statistics often summarize cash flows over a specific period, potentially overlooking the investment size and any cash inflows that occur after the designated testing period.

Rate-Based Statistics Represent Summary Cash Flows, and These Summaries Tend