A Factor Is a Variable That

question 22

Multiple Choice

A factor is a variable that:

• A)affects the returns of risky assets in a systematic fashion.
• B)affects the returns of risky assets in an unsystematic fashion.
• C)correlates with risky asset returns in a unsystematic fashion.
• D)does not correlate with the returns of risky assets in an systematic fashion.
• E)None of the above.

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Definitions:

Identical Units

Units of product that are uniform in nature and interchangeable with each other in the manufacturing process.

Continuous Basis

Operations or processes that are carried out without interruption, constantly over time.

Process Cost System

An accounting method used in manufacturing where costs are assigned to units of product as they move through the production process.

Job Order Cost Cards

Records that detail the specific costs (materials, labor, and overhead) associated with a particular job or batch of products.