A Stock's Alpha Is Defined as the Stock's

question 53

Multiple Choice

A stock's alpha is defined as the stock's:

• A)expected return minus its required return.
• B)expected return minus its actual return.
• C)nominal return minus its required return.
• D)required return minus its actual return.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and its expected cost, based on standard rates and hours.

Standard Hours Allowed

The predetermined amount of time expected to be required to complete a unit of work, used as a benchmark in costing and efficiency analysis.

Excel Spreadsheet

A digital worksheet or grid in Microsoft Excel, where users can organize data, perform calculations, and analyze information.

Clearing Account

An account used to temporarily hold transactions in progress or to reconcile discrepancies before the amounts are posted to the correct accounts.