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avanturin [10]
3 years ago
5

Security A and Security B have similar risks. However, Security A has a higher rate of return than Security B. The return on Sec

urity A minus the return on Security B is referred to as which one of the following? A) market return B) abnormal return C) deviated return D) excess return E) real return
Business
1 answer:
svlad2 [7]3 years ago
8 0

Answer:

The correct answer to the following question is option D) Excess return.

Explanation:

The rate of return can be defined as the gain or loss( net) that a company or business gets on the investment over a defined period of time. Where for taking out the rate of return , the formula which can be used is -

Current value - Initial value / Initial value  x 100

The rate of return helps in evaluating what is the investment growth rate of a company on a year to year basis and what are changes in revenues that have occurred.

When two security's have similar risk and if one security has higher return than other , then the difference between them would be called excess return.

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Answer the question in the pic.
CaHeK987 [17]

Answer:

Uhhhhhhh There's no picture.

7 0
3 years ago
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As the name suggests, convertible bonds allow the owner the option to convert the bonds into a fixed number of shares of common
kipiarov [429]

Answer: 1. Convertible bond

2. Putable bond

3. Purchasing power bond.

Explanation:

The $100,000 investment is a convertible bond. This is a fixed-income debt security which yields interest payments. It should be noted that it can also be converted to equity shares or common stock.

Nazeem should pick a putable bond. This is because the puttable bond has a put option that is embedded ans he can also demand his principal to be paid early.

Nazem also recently bought bonds that have their interest rate tied to the consumer price index (CPI) so that he will be protected if inflation rates increase. Nazem has invested in purchasing power bond .

8 0
3 years ago
Which of the following is not an example of a liability?
finlep [7]
D , because liability means to be responsible for something, especially by law.
3 0
2 years ago
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What general conclusions can be drawn about Eli’s situation? Check all that apply.
Alex777 [14]

Answer:

He may still be covered in some cases.

He faces more risk than insured people do.

He may have to take precautions but many factors are beyond his control.

Not being able to afford insurance was a factor in him not being covered.

Explanation:

I got it correct

7 0
3 years ago
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Total transaction costs, based on the assumptions provided, are expected to be:
Jobisdone [24]

Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.

<h3 /><h3>What are the total transaction costs?</h3>

Equity financing cost:

= 5.5% x 241,350.75

= $13,274.29

Debt financing cost:

= 1.5% x 241,350.75

= $3,260.26

Other transaction costs:

= $3,000

Target debt redemption premium:

= 70,242 x 3%

= $2,107.26

The total transaction costs are:

= 13,274.29 + 3,260.26 + 3,000 + 2,107.26

= $22,002

Find out more on acquisition costs at brainly.com/question/14300655

#SPJ1

8 0
2 years ago
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