Which One of the Following Would Tend to Indicate That

question 61

Multiple Choice

Which one of the following would tend to indicate that a portfolio is being effectively diversified?

• A)A decrease in the portfolio standard deviation
• B)An increase in the portfolio rate of return
• C)An increase in the portfolio beta
• D)An increase in the portfolio standard deviation
• E)A constant portfolio beta

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Definitions:

Direct Materials Cost Variance

The difference between the budgeted cost of materials and the actual cost used in production.

Materials Cost

The expense incurred for the raw materials that are used in the production of goods or services.

Yards Per Unit

A measurement used to indicate the amount of yardage (length in yards) of material required or utilized per unit of production.

Direct Labor Variances

The differences between the budgeted or standard costs of direct labor and the actual costs incurred, which can indicate efficiencies or inefficiencies in labor usage.