William and Kate invest in two different securities carrying the same amount of risk. However, William earned a 10 percent return and Kate earned a 7 percent return on their investments. The additional return on William's investment is considered a(n) _____.?
A. ?risk adjusted return
B. ?justified return
C. ?abnormal return
D. ?efficient return
E. ?premium return
Answer: C
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Tolerable misstatement is:
A. materiality allocated to a specific account. B. materiality allocated to an assertion. C. materiality for the income statement as a whole. D. materiality for the balance sheet as a whole.
Business and technical professionals should take pains to use English that is easily understood and ________________
a. always brief b. discourages misinterpretation c. to put everything in writing d. to learn local languages
Organizations that make it to the growth stage, design strategies to
A. increase the overall scope of operations. B. leave exiting product-market domains. C. reduce the tendency to increase operational scope. D. reduce the commitment to new product-market domains.
Revenue on account amounted to $6800. Cash collections of accounts receivable amounted to $4400. Expenses for the period were $3500. The company paid dividends of $1150. What was net income for the period?
A. $900 B. $3300 C. $2150 D. $3250