Investment Risk Is

question 68

Multiple Choice

Investment risk is

• A) the probability of achieving a return that is greater than what was expected.
• B) the probability of achieving a beta coefficient that is less than what was expected.
• C) the probability of achieving a return that is less than what was expected.
• D) the probability of achieving a standard deviation that is less than what was expected.

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Definitions:

Actual Price

The price at which a good or service is sold in the market, as opposed to its listed or theoretical price.

Standard Costing

An accounting method that uses standard costs for cost control and financial reporting.

Variable Manufacturing Overhead

Manufacturing overhead costs that fluctuate with the level of production activity.

Overhead Rate Variance

The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.