Consider the Following List of Risk Factors

question 14

Multiple Choice

Consider the following list of risk factors:
(1) monthly growth in industrial production
(2) return on high book to market value portfolio minus return on low book to market value portfolio
(3) change in inflation
(4) excess return on stock market portfolio
(5) return on small cap portfolio minus return on big cap portfolio
(6) unanticipated change in bond credit spread
Which of the following factors would you use to develop a macroeconomic-based risk factor model?

• A) (1), (2), and (3).
• B) (1), (3), and (5).
• C) (2), (4), and (5).
• D) (1), (3), and (6).
• E) (4), (5), and (6).

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Definitions:

Balanced Scorecard

A method for planning and managing strategy that aligns organizational activities with its vision and strategy, enhances communication both internally and externally, and tracks progress towards achieving strategic objectives.

Work In Process

Refers to the inventory of unfinished goods that are in the process of being manufactured.

Total Manufacturing Costs

The sum of all expenses directly involved in the production of goods, including raw materials, labor, and overhead.

Cost Of Goods Manufactured

The total cost accumulated during the production of goods within a specified period, including labor, materials, and overhead expenses.