You Have a Portfolio Which Is Comprised of 72 Percent

question 79

Multiple Choice

You have a portfolio which is comprised of 72 percent of stock A and 28 percent of stock B.What is the variance of this portfolio?

• A)190.9
• B)203.8
• C)268.1
• D)290.9
• E) 306.9

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Definitions:

Cost Variance

The difference between the expected (budgeted) cost of an activity and the actual cost incurred, used in budgeting and financial reporting to monitor performance.

Standard Cost

A predetermined cost of manufacturing, projecting what each product should cost under normal conditions.

Actual Cost

Actual cost is the true amount of money spent on producing a product, completing a project, or conducting an activity, including all direct and indirect expenses.

Direct Labor Rate Variance

The difference between the actual rate and the standard rate paid for direct labor multiplied by the actual direct labor hours used in producing a product.