Downtown Industries Common Stock Had Returns of 5

question 91

Multiple Choice

Downtown Industries common stock had returns of 5.2,10.3,9.3,and 9.5 percent,respectively,over the past four years.What is the standard deviation of these returns?

• A) 2.29 percent
• B) 2.38 percent
• C) 2.41 percent
• D) 2.59 percent
• E) 2.82 percent

---

Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products based on a specific activity base.

Machine-Hours

A measure of production output or capacity, indicating the total hours that machinery is operated over a specific period.

Fixed Overhead

Regular, unchanged costs incurred by a business for its operations regardless of varying levels of production, such as rent, salaries, and insurance.

Unused Capacity

The available resources or production capabilities that are not currently being utilized.