For the Past Year, a Particular Stock Has a Relative

question 36

Multiple Choice

For the past year, a particular stock has a relative strength value of 1.03 as compared to the market. This means that the stock:

• A)increased in value 3 percent more than the market for the day.
• B)has 3 percent more risk than the average security.
• C)outperformed the market for the period.
• D)had 3 percent higher trading volume on a growth basis as compared to the market.
• E)is selling for 103 percent of the market value per share.

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Definitions:

Fixed Expenses

Recurring costs that do not vary with the volume of production or sales, similar to fixed costs.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Direct Labour

The labour costs directly attributable to the production of goods or services, including wages for workers who physically manufacture a product.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.