What Is the Process of Setting Standards,receiving Feedback on Actual

question 84

Multiple Choice

What is the process of setting standards,receiving feedback on actual performance,and taking corrective action whenever actual performance deviates significantly from planned performance?

• A)monitoring
• B)control
• C)eye balling
• D)comparing

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Definitions:

Arbitrage Pricing Theory (APT)

An equilibrium asset pricing theory that is derived from a factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.

Arbitrage Pricing Theory (APT)

A financial model that estimates the price of assets based on the relationship between their expected return and macroeconomic factors that influence all assets' returns.

Market Risk Premium

The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.

Beta

An indicator of the variability of a stock's performance compared to the general market, where a beta greater than 1 suggests a volatility superior to that of the market.