Answer: Return on a risky security minus the risk-free rate.
Explanation:
The excess return is known to be the amount of return on a risky asset that exceeds the return that one would have received had they invested in a risk-less asset such as Treasury Bills.
If the return you received on shares was 5% and the return on riskfree assets is 2%, your excess return is 3%.
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Answer and Explanation:
The journal entries are shown below:
On Aug 1
Short-term investments $70,000
To Cash $70,000
(Being the short term investment is recorded)
Here short term investment is debited as it increased the asset and credited the cash as it decreased the asset
On Oct 30
Cash ($70,000 × 11% × 90 days ÷ 360 days) 1,925
To Interest revenue $1,925
(Being the interest revenue is recorded)
here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue
Here we assume 360 days in a year
Answer:
once in place, the ERP can dramatically enhance operational efficiencies and reduce costs.
Explanation:
Based on the scenario being described within the question it can be said that Sam should still go ahead with the implementation because once in place, the ERP can dramatically enhance operational efficiencies and reduce costs. Therefore seeing as the main goal of every product development company is to output as much product as efficiently as possible and at very low costs then it is worth implementing this system.
Answer:
0.25
Explanation:
Given :
The 
the non defective cars = 
We will consider all the defective 
only. This is only because the value of the used car is $ 2000 and it is lower than the price of a good car that is $10,000. Thus only defective cars are being sold as the old cars.
For a risk neutral customer, the price that he is ready to give for the new car is the reservation price of a non defective car. It means that (the amount of $ 8000 is the value of the good car x chances of getting a good car) +( the value of the bad car x chances of getting a bad car).
Since we know that x is the fraction of all the cars sold in the market are defective, it means that the fraction of the good cars is 1 - x. Thus putting the values,
= 0.25
Thus the value of :
Answer:
The answer is: Brand Images
Explanation:
A company´s brand image is how customers "view them". It´s the impression they have formed in their mind about how a particular brand is, what it represents and what things are associated with them. It´s a process that is usually developed over a period of time.
For example when you hear the words Mercedes Benz, you immediately associate that brand with luxury cars and an expensive lifestyle (that´s their brand image). Most people are surprised when they realize MB also manufactures utility vehicles, trucks, military transports, and small (and not very expensive or luxurious) cars.
