Which of the Following Is an Example of Special Cause

question 53

Multiple Choice

Which of the following is an example of special cause variation?

• A)Every day you spend 1 hour cooking dinner for your kids,and they always love the meal.However,today you came home and the electricity was out,so all of the food is spoiled.Hence,you order takeout.
• B)Every day you spend 1 hour cooking dinner for your kids,and they always love the meal.However,today you are late getting home from work so you cook dinner 1 hour later than usual.
• C)Every day you spend 1 hour cooking dinner for your kids,but your kids usually do not like what you cook.
• D)None of the above

---

Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole, indicating how much the investment’s value is expected to fluctuate.

Expected Return

The weighted average of all possible returns for a given investment, where the weights are the probabilities of each outcome, representing an anticipation of gains on an asset.

Market Risk Premium

The additional return over the risk-free rate that investors require to compensate them for the extra risk of investing in the stock market.

Fairly Priced

A term suggesting an asset is trading at a price close to its intrinsic value, considering its earnings, growth potential, and risk.