Answer:
subtracting the risk-free rate of return from the market rate of return
Explanation:
Market risk premium is the premium over the risk free rate that investors demand for holding a risky asset
Market risk premium = market rate of return - risk free rate
the higher the risk premium, the higher the return investors are demanding and the riskier the investment
for example if risk free rate is 5% , market rate of return in industry A is 10% while in industry B it is 20%
Market premium in A = 10% - 5% = 5%
Market premium in b = 20% - 5% = 15%
Answer:
The statement is true
Explanation:
As a fact, I agree that with large sample sizes, even the small differences between the null value and the observed point estimate can be statistically significant.
To put it differently, any differences between the null value and the observed point estimate will be material and/or significant if the samples are large in shape and form.
It's also established that point estimate get more clearer and understandable, and the difference between the mean and the null value can be easily singled out if the sample size is bigger.
Suffix to say, however, while the difference may connote a statistical importance, the practical implication notwithstanding, will be looked and studied on a different set of rules and procedures, beyond the statistical relevance.
Answer:
c. $3,200 favorable.
Explanation:
We know that
Total controllable cost variance = Budgeted overhead cost - actual overhead cost
where,
Budgeted overhead cost = Variable overhead + Fixed overhead
where,
Variable overhead = 40,000 units × $2 = $80,000
And, the fixed overhead = $72,000
So, the budgeted overhead = $152,000
And, the actual one is $148,800
So, the total controllable cost variance would be
= $152,000 - $148,800
= $3,200 favorable
Answer:
Different aspects to be considered:
First of all, the steakhouse probably has the most clients between 6 to 8 PM, that is why discounts are not offered during that time.
Second, the discount is offered to only a certain group, employees of other stores, because it is a promotional strategy aimed at increasing the number of clients during slow hours. Since this is a fancy place, it is probably expensive also. Most employees would not actually eat there except on a special event, e.g. birthday or anniversary dinner. Even with the 20% discount, not many of them will actually eat there.
This is something nice to offer, since a shopping mall is a close environment where a lot of different people work together, even if very few will actually take the offer. It is normal that different stores have distinct promotions for the employees that work there. It is similar to offering perks that help create a better working environment between the employees of different stores.
The invention of (cash register) addressed two challenges faced by department store owners in the late 19th century: creating detailed sales records and embezzlement by employees.
