In the Capital Asset Pricing Model (CAPM),the Term Beta,β,is

question 88

Multiple Choice

In the Capital Asset Pricing Model (CAPM) ,the term Beta,β,is

• A)a measure of systematic risk inherent in a security.
• B)calculated as the "covariance of future returns between a specific security and the market portfolio" divided by the "variance of returns of the market portfolio."
• C)a measure of systematic risk inherent in a security; calculated as the "covariance of future returns between a specific security and the market portfolio" divided by the "variance of returns of the market portfolio."
• D)none of the options

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.

Materials Price Variance

The difference between the actual cost of raw materials and the standard or expected cost, multiplied by the quantity of materials purchased.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (or budgeted) variable overhead based on a standard rate.

Labor Efficiency Variance

measures the difference between the actual labor hours used and the standard labor hours expected for the production achieved, indicating labor efficiency.