Studies Show That If a Fund Has a Beta of 1.1

question 40

Multiple Choice

Studies show that if a fund has a beta of 1.1 for year 1, a good forecast for the beta in year 2 is

• A) 1.3.
• B) 1.1.
• C) .9.
• D) 1.0.

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Definitions:

Labour Efficiency Variance

The difference between the actual hours worked and the standard hours expected to produce a certain level of output, multiplied by the standard hourly rate.

Labour Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Direct Material Units

Refers to the physical units of raw materials that are directly traceable and integral to the finished product.

Standard Costing

A cost accounting method that assigns a fixed cost to inventory and measures any variances to actual costs.