Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) The typical R2 for a stock is about 0.3 and the typical R2 for a portfolio is also about 0.3.
• B) The typical R2 for a stock is about 0.94 and the typical R2 for a portfolio is about 0.6.
• C) The typical R2 for a stock is about 0.3 and the typical R2 for a large portfolio is about 0.94.
• D) The typical R2 for a stock is about 0.94 and the typical R2 for a portfolio is also about 0.94.
• E) The typical R2 for a stock is about 0.6 and the typical R2 for a portfolio is also about 0.6.

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Definitions:

Operating Expenses

Costs associated with the normal operations of a business, excluding the costs of goods sold, such as rent, utilities, and payroll.

Total Service Department Charges

The collective costs charged by service departments within an organization for their services to other departments.

Income From Operations

The profit realized from a business's own operations, excluding income from other sources and before taxes and interest expenses.

Profit Center

A profit center is a branch or division of a company that is treated as a separate unit for the purpose of assessing its revenue-generating ability and profitability.