Benchmark Risk Is Defined as

question 38

Multiple Choice

Benchmark risk is defined as

• A) the return difference between the portfolio and the benchmark.
• B) the standard deviation of the return of the benchmark portfolio.
• C) the standard deviation of the return difference between the portfolio and the benchmark.
• D) the standard deviation of the return of the actively-managed portfolio.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Manufacturing Margin

The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.

Variable Costing

A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.

Variable Overhead

Costs that change with the level of production or service activities.