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Problem:

1. A compound average growth rate (CAGR) takes volatility into account.

True or False

2. Which of the following common ratios measures leverage? 

  1. Current ratio 
  2. Times interest earned 
  3. Receivables turnover 
  4. None of the above

Additional Information:

These two objective question in Finance are about compound average growth rate as well as common ratios measuring leverage. The first question is whether or not Compound Average Growth Rate takes volatility in account as well as the second question is about the common ratio employed for measuring leverage.

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