What Is the Variance of the Expected Returns on This

question 78

Multiple Choice

What is the variance of the expected returns on this stock?

• A)1.21
• B)1.42
• C)1.56
• D)3.84
• E)4.03

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Definitions:

Variable Costing

An accounting method where only variable production costs are included in product costs, with fixed overhead treated as a period cost.

Net Operating Income

A monetary measurement that determines an organization's profit by deducting operational costs from its operational revenue.

Absorption Costing

A costing method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Contribution Format

A way of presenting an income statement where variable and fixed costs are shown separately, highlighting the contribution margin.