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8. A firm's liquidity ratios can provide early warning signs of cash flow problems for the firm. 9. The goal of the "Inventory Turnover Ratio" and the "Accounts Receivable Turnover Ratio" is to have as low a turnover rate value as possible. 10. The more debt that a firm uses in relation to its "Total Assets," the greater its financial leverage. 11. On a "common-size" Income Statement, each account is expressed as a percentage of the firm's "Net Income" for the year. 1 12. The stocks of firms that are expected to perform well typically sell at a higher "Market/Book Ratio." 13. Historically, U.S. Treasury Bonds have been the most risky investment, as measured by their higher standard deviation of returns vs. the standard deviation of other securities. 14. For a "normal probability distribution," 95% of the outcomes lie +/- one standard deviation from the expected return value. 15. An "efficient portfolio" provides the maximum level of return for a given level of risk. 16. Over long periods of time, the returns earned on internationally-diversified portfolios tend to be superior to returns on portfolios that contain only domestic (i.e., one country) investments. 8. A firm's liquidity ratios can provide early warning signs of cash flow problems for the firm. 9. The goal of the "Inventory Turnover Ratio" and the "Accounts Receivable Turnover Ratio" is to have as low a turnover rate value as possible. 10. The more debt that a firm uses in relation to its "Total Assets," the greater its financial leverage. 11. On a "common-size" Income Statement, each account is expressed as a percentage of the firm's "Net Income" for the year. 1 12. The stocks of firms that are expected to perform well typically sell at a higher "Market/Book Ratio." 13. Historically, U.S. Treasury Bonds have been the most risky investment, as measured by their higher standard deviation of returns vs. the standard deviation of other securities. 14. For a "normal probability distribution," 95% of the outcomes lie +/- one standard deviation from the expected return value. 15. An "efficient portfolio" provides the maximum level of return for a given level of risk. 16. Over long periods of time, the returns earned on internationally-diversified portfolios tend to be superior to returns on portfolios that contain only domestic (i.e., one country) investments