Empirical Studies Find That Emerging Market Returns Tend to Have

question 21

Multiple Choice

Empirical studies find that emerging market returns tend to have ??______.

• A) lower volatilities than developed market returns
• B) lower correlations with the world market portfolio than developed market returns
• C) less political risk than developed market returns
• D) More than one of the above
• E) None of the above

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.

Direct Labor-hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products or services.

Variable Overhead Rate Variance

The difference between the actual variable overhead cost incurred and the expected (standard) cost, based on the actual level of activity.

Direct Labor Standards

The expected labor time and cost that should be incurred under normal conditions to produce a unit of output.