Benchmark Risk Is Defined as

question 29

Multiple Choice

Benchmark risk is defined as

• A)the return difference between the portfolio and the benchmark
• B)the standard deviation of the return of the benchmark portfolio
• C)the standard deviation of the return difference between the portfolio and the benchmark
• D)the standard deviation of the return of the actively-managed portfolio
• E)none of the above.

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Definitions:

Annual Overhead

The total expenses incurred by a business to operate over the course of a year, excluding direct labor and materials costs.

Direct Labor Hours

Direct labor hours are the total hours worked by employees directly involved in the production of goods or services.

Overhead Rate

The rate at which indirect costs are allocated to produced goods or services.

Direct Labor Dollar

The total cost of wages paid to workers who are directly involved in the production of goods or delivery of services.