In the Mutual Fund Industry,the Most Common Performance Measure Is

question 26

Multiple Choice

In the mutual fund industry,the most common performance measure is a hypothetical rate of return which assumes performance is constant over the entire period and is known as the:

• A)cumulative total return.
• B)average annual total return.
• C)total indexed return.
• D)compounded geometric return.

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Definitions:

Direct Labor

Direct labor involves the work of employees that can be directly attributed to the production of specific goods or services.

Direct Materials

The raw materials that are traceable directly to the production of a specific good or product, forming an integral part of the finished product.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Direct Materials

Primary elements that are directly involved in the production process of particular products or services.