If William earns a 10 percent return and Kate earns a 7 percent return on investments with the same risk, the additional 3 percent return on William's investment is a(n) _____.
A. risk adjusted return
B. justified return
C. abnormal return
D. efficient return
E. premium return
Answer: C
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Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful
A letter of credit that is confirmed in the ________ country has the additional advantage of eliminating the problem of ________
A) exporter's; portfolio risk B) importer's; blocked foreign exchange C) exporter's; blocked foreign exchange D) none of the above
A function or rule that assigns a numerical value to each simple event of an experiment is called:
A. a sample space. B. a probability distribution. C. a random variable. D. None of these choices.
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing$5880?Supervising$33,600?Other$12,100?Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Processing)Batches (Supervising)Product M011,400?800?Product M5600?800?Total12,000?1600??Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product
M0Product M5Sales (total)$86,300?$98,400?Direct materials (total)$30,200?$33,100?Direct labor (total)$29,500?$43,400??The activity rate for the Supervising activity cost pool under activity-based costing is closest to: A. $21.00 per batch B. $24.68 per batch C. $28.56 per batch D. $7.35 per batch