answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
avanturin [10]
2 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]2 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.

You might be interested in
A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of pya, where a 5 pd2y4. if the load is kno
raketka [301]

Here is the correct question.

A cylindrical part of diameter d is loaded by an axial force p. this causes a stress of P/A, where A= πd²/4. if the load is known with an uncertainty of ±10 percent, the diameter is known within ±5 percent (tolerances), and the stress that causes failure (strength) is known within ±15 percent, determine the minimum design factor that will guarantee that the part will not fail.

Answer:

the minimum design factor that will guarantee that the part will not fail. = 1.434

Explanation:

Looking at the uncertainty; loss of strength must be raised to \dfrac{1}{0.85} due to the stress that causes the failure (strength)  is known within ±15% uncertainty.

Looking at the uncertainty; the maximum allowable load  must be reduced to \dfrac{1}{1.1} because the load is known with an uncertainty of ±10.

Looking at the uncertainty; the diameter must be raised to \dfrac{1}{0.95}  because the diameter is known within an uncertainty of ±5.

The decrease in the maximum allowable stress can be estimated as:

\sigma' = \dfrac{P'}{A'}

where,

\sigma = stress

P = load

A = cross-sectional area of the cylinder

∴

\sigma' = \dfrac{P'}{\dfrac{\pi}{4}(d')^2}

replacing P' with \dfrac{1}{1.1}P   and d' with \dfrac{1}{0.95}d, we have:

\sigma' = \dfrac{(\dfrac{1}{1.1})\times p }{\dfrac{\pi}{4}(\dfrac{1}{0.95 } d)^2 }

\sigma' =\dfrac{P}{\dfrac{\pi}{4}d^2} (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }

\sigma' =\sigma \times (\dfrac{\dfrac{1}{1.1} }{(\dfrac{1}{0.95})^2 }) }

\sigma' =\sigma \times 0.82045

\dfrac{\sigma' }{\sigma } =0.82045

Thus, the uncertainty in diameter and the load of the allowable stress needs to decrease to 0.82045

Now, the minimum design factor that will ascertain that the part will not fail can be computed as:

n_d = \dfrac{loss  \ of  \ function \  parameter }{maximum \  allowable \ parameter}

where;

the design factor = n_d

n_d =\dfrac{\dfrac{1}{0.85} }{0.82045}

the design factor  n_d = 1.434.

Thus,  the minimum design factor that will guarantee that the part will not fail. = 1.434

7 0
1 year ago
Sloan Company has owned a debt securities investment during 2021 that has increased in fair value. After all closing entries for
Anuta_ua [19.1K]

Answer:

This securities investment classifies as unrealized gains, as it has to be reported in the balance sheet under shareholder equity in the Accumulated Other Comprehensive Income account.

Explanation:

Unrealized gains (or losses) only exit on paper, since the company cannot recognize the gains until it sells the securities. It is an estimate of the profits that the company can make when it sells the securities, but until it does, they cannot be included in the income statement.

4 0
1 year ago
Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 ou
fomenos

Answer: $920,000

Explanation:

Given the following :

Beginning balance = $800,000

Brown's earning = $600,000

Casg Dividend = $200,000

Dexter's portion of brown's outstanding shares = 3000/ 10000 = 0.3

Therefore, Dexter's investment account is as follows :

Beginning balance + (earning × 0.3) - (Dividend × 0.3)

$800,000 + ($600,000 × 0.3) - ($200,000 × 0.3)

$800,000 + $180,000 - $60,000

$980000 - $60000 = 920000

4 0
2 years ago
Motorist has a flat tire and is in the process of changing it. one of the lug nuts is very tight and he is trying to remove it.
Lostsunrise [7]
<span>Actually motorist best approach here is to trying to figure out the correct removing rotation of lug nuts, then rotate in that direction it smoothly as possible by applying some oil or grease,which will surely do the need of the motorist to change the flat tire safely, instead of pushing or pulling it hard, which not solve the problem at all even after lot of time and energy,</span>
4 0
2 years ago
Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for
frozen [14]

Answer:

A

Explanation:

3 0
2 years ago
Read 2 more answers
Other questions:
  • A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and r
    15·1 answer
  • Which would be the appropriate monetary policy and goal during a period of high inflation? A) Increase interest rates in order t
    13·2 answers
  • Identify the correct sentence. a) Large corporations and small businesses today believe that "going green" is of paramount impor
    15·1 answer
  • Anton believes his company's overhead costs are driven (affected) by the number of machine hours because the production process
    8·1 answer
  • During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during h
    14·1 answer
  • Southwick Products manufactures its products in two separate​ departments: Machining and Assembly. Total manufacturing overhead
    12·1 answer
  • Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income sh
    13·1 answer
  • Trade-off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity financed. EBIT is expected to stay at this l
    15·1 answer
  • Food Fanatics caters meals where their cost of producing an extra meal is $25. Each of their meals is standard and sells for $20
    14·1 answer
  • Well Water Inc. wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!