The Flexible Budget Variance Arises Because the Number of Units

question 58

True/False

The flexible budget variance arises because the number of units actually sold differs from the static budget units.

---

Definitions:

Complete Portfolio

A diversified investment portfolio that includes a wide range of asset classes balanced according to an investor's risk tolerance and financial goals.

Risky Assets

Investments that carry a significant possibility of losing all or part of the initial investment.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government bonds.

Optimal Risky Portfolio

A portfolio of investments that maximizes expected return for a given level of risk by carefully selecting and weighting risky assets.