In Performance Evaluations ________

question 90

Multiple Choice

In performance evaluations ________.

• A) managers should use the swap exchange rate prevailing at the end of a financial period
• B) managers should use the average exchange rate prevailing at the end of a financial period
• C) managers should use the exchange rate prevailing on the date the assets were acquired
• D) managers should use the exchange rate prevailing at the end of a financial period

---

Definitions:

Betas

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole, often used in the Capital Asset Pricing Model.

Standard Deviation

A statistical measure of variance or dispersion in a set of values, commonly used to assess investment risk.

Expected Return

The anticipated amount of profit or loss an investment is projected to yield based on historical or estimated future performance.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market.