Ans. The equilibrium rate of return on a 1-year Treasury bond is 6.65% (please check the explanation)
Explanation:
Hi, well, this type of bonds exist so people can avoid the time value of money risk, in other words, to keep money save from inflation and provide a risk free return at the same time. From a part of the text I can tell that the person who wrote it wanted to add up the risk free rate and the inflation rate, that is 3.05%+3.60% =6.65%.
This is why I wrote this answer, but the truth is that since they are both effective rates (risk free rate and inflation), they need to be add as effective rates, that is:
Therefore
So the real equilibrium rate of return is 6.76%, but for the sake of the question, I wrote 6.65%.
The Victoria's part is true she is pursuing cost leadership by keeping it's price low although the Walmart's example is not related to differentiation strategy of competitive advantage. Because keeping mix of products is not differentiation, it's not unique.
Porter suggested 4 strategies and he believed that by using one of these strategies companies can gain <em>competitive advantage. </em>
Interactional Justice is an organizational behavior that deals with how respectfully and dignified people affected by a decision are treated.
As a management or leadership, interactional justice is important as it shows how well managers/leaders can execute their decisions and use their authority with employees/subordinates while being fair, polite and open to them.
Interactional Justice can simply be said to be the fairness and openness with which decisions are made known to the affected individuals.