Sally Is Optimistic About the Performance of Both the U

question 64

Multiple Choice

Sally is optimistic about the performance of both the U.S. and foreign equity markets. She wants to invest in a security that takes advantage of her optimism yet is tax payer friendly. Sally should purchase a:

• A) global stock fund with high portfolio turnover.
• B) international stock fund with low portfolio turnover.
• C) global stock fund with low portfolio turnover.
• D) international stock fund with high portfolio turnover.

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Definitions:

DL Wage Variance

The difference between the budgeted wage and the actual wage paid to direct labor employees.

DL Efficiency Variance

The difference between the actual hours worked by direct labor to produce goods and the expected (or standard) hours, multiplied by the standard labor rate.

Skilled Engineering Labor

Workforce with specialized technical and engineering skills, vital for designing, implementing, and maintaining complex systems.

Direct Labor Efficiency Variance

A measure that analyses the variance between the actual hours worked and the standard hours set for producing a certain number of units.