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:

Direct Materials

Raw materials that are directly traceable and integral to the finished product in the manufacturing process.

Selling Costs

All costs that are incurred to secure customer orders and get the finished product or service into the hands of the customer.

Indirect Costs

Costs that are not directly traceable to a single product or operation, such as overhead.

Opportunity Costs

The potential benefit missed out on when choosing one alternative over another.