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gregori [183]
4 years ago
9

The excess return is computed as the: Multiple Choice return on a security minus the inflation rate. risk-free rate plus the inf

lation rate. risk premium on a risky security minus the risk-free rate. risk-free rate minus the inflation rate. return on a risky security minus the risk-free rate.
Business
1 answer:
navik [9.2K]4 years ago
7 0

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%.

Please do react or comment if you need any clarification or if the question helped you so you can help others as well. Thank you.

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Based on the fact that Snowpeak Ski Resort offers prices for lifts that are barely over their marginal cost but still make profits from high equipment rental, the pricing strategy in use is Cross-subsidization.

<h3>What is Cross-subsidization?</h3>

This is a pricing strategy that allows a company to charge one group of customers a higher amount for goods sold or services rendered while charging another group of customers a lower amount for other goods and services.

The logic is that the profits from the higher priced goods will take care of the marginal profits from the smaller cost goods and services.

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Find out more on Cross-subsidization at brainly.com/question/6886629

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Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth
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