An Aggressive (That Is, Higher Risk) Portfolio Would Have a Beta

question 83

Multiple Choice

An aggressive (that is, higher risk) portfolio would have a beta of:

• A)1
• B)0
• C)less than 1 but greater than 0
• D)more than 1

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Definitions:

Variable Overhead

Costs that vary proportionally with the level of production or sales, such as utilities or commissions.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

Labor costs that can be identified with a specific product or service.