A Stock Produced Total Returns of 9

question 317

Multiple Choice

A stock produced total returns of 9.78%, 13.61%, 1.19%, and -4.90% over the past four years, respectively. What is the variance on this set of returns?

• A) 0.70%
• B) 0.88%
• C) 1.38%
• D) 1.63%
• E) 2.09%

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Definitions:

Optimal Order Quantity

Optimal Order Quantity is the ideal amount of inventory a business should purchase to minimize costs while meeting demand without overstocking or understocking.

Economic Order Quantity

A formula used to determine the optimal order quantity that minimizes the total inventory holding costs and ordering costs.

Flow Time

The total time it takes for a product to move through a production process, from start to finish, including both processing and waiting times.

Weekly Demand

The total quantity of goods or services that consumers wish to purchase within a week, often used for inventory and production planning.