According to the Definitions Given in the Text, If Stock

question 145

Multiple Choice

According to the definitions given in the text, if Stock A has a standard deviation of 4% and Stock B has a standard deviation of 3% which stock is riskier?

• A)Stock A
• B)Stock B
• C)they are equally risky
• D)cannot determine from the information given

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Definitions:

Budgeted Amounts

Financial plans that project income, expenditures, and allocations for a specific period, often used for control and decision-making purposes.

Actual Production

The real, quantifiable amount of goods or services produced by a company within a specific period.

Fixed Factory Overhead Volume Variance

A measure used in managerial accounting to assess the difference between the budgeted and the actual volume of production, affecting fixed overhead costs.

Standard Fixed Overhead Rate

Rate calculated by dividing the budgeted fixed overhead by the standard activity index (like labor hours or machine hours) expected.