In the Characteristic Selectivity (CS) Performance Measure

question 90

Multiple Choice

In the Characteristic Selectivity (CS) performance measure,

• A) portfolio performance is measured by assessing the quality of services provided by money managers by looking at adjustments made to the content of their portfolios.
• B) portfolio performance is measured by examining both unsystematic and systematic risk.
• C) portfolio performance is measured by comparing the returns of each stock in the portfolio to the return of a benchmark portfolio.
• D) portfolio performance is measured on the basis of return per unit of risk.
• E) portfolio performance is measured on the basis of historic average differential return per unit of historic variability of differential return.

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Definitions:

Work in Process

Refers to the cost of the unfinished goods in the manufacturing process including labor, material, and overhead.

Materials Price Variance

The difference between the actual cost of direct materials and the standard cost multiplied by the actual quantity purchased or used.

Raw Materials

Basic materials used in the production or manufacturing process, before being transformed into finished goods.

Work in Process

Goods that are in the midst of being produced, representing inventory that is not yet fully completed.