Suppose That You Have Computed a Stock Return's Variance with Weekly

question 7

Multiple Choice

Suppose that you have computed a stock return's variance with weekly data.To convert this to an annual variance,you need to use the adjustment:

• A) Variance (Annual)= Variance (Weekly)*12
• B) Variance (Annual)= Variance (Weekly)*52
• C) Variance (Annual)= Variance (Weekly)* 250
• D) Variance (Annual)=Variance (Weekly)*260
• E) None of these answers are correct.

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Definitions:

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected for the work performed, multiplied by the standard hourly labor rate, indicating efficiency in labor use.

Insufficient Demand

A situation where the quantity of a product or service sought by buyers is less than the quantity supplied.

Laid Off

The termination of employment typically due to reduction in workforce by a company as a cost-saving measure.

Wages And Salaries

Compensation paid to employees for their labor, either on an hourly (wages) or fixed salary basis.