Accounting rate of return Accounting rate of return (also known as simple rate of return) is the ratio of estimated accounting profit of a project to the average investment made in the project. ARR is used in investment appraisal. Formula Accounting Rate of Return is calculated using the following formula: ARR = Average Accounting Profit Average Investment Average accounting profit is the arithmetic mean of accounting income expected to be earned during each year of the project’s life time
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THE LAWS OF RETURN TO SCALE The laws of return to scale explain the behavior of output in response to a proportional and simultaneous change in input. Increase in inputs proportionately and simultaneously is in fact expansion of the scale of production. Statement: “As a firm in the long run increases the quantities of all factors employed‚ other things being equal‚ the output may rise initially at a more rapid rate than the rise of increase in inputs‚ then output may increase in the same proportion
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Return to Sender by Julia Alvarez‚ stars Tyler Paquette‚ a small town‚ farm boy‚ and Mari Cruz‚ an illegal immigrant from parental responsibilities. Words are about to pulverize‚ when Tyler’s sheltered life on the farm‚ moves Mari’s debilitated family and fugitive status. When the Paquette’s hire the Cruz family to help out on the farm‚ they are doing the Cruzes a big favor when they ever bargained for. Thesis Mari Cruz and Tyler Paquette are extremely family-oriented and would do anything for
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chance‚ Captain Vye and the reddleman‚ Diggory Venn‚ walk on the same road. Captain Vye suspects that Thomasin Yeobright is in Venn’s wagon‚ and unmarried. He will later tell his granddaughter‚ Eustacia‚ that Thomasin and Wildeve are not married. Fate 2: It is a combination of fate and scheming that brings Eustacia and Clym together. Eustacia hears from Charley that the Christmas mummers will be performing at the Yeobrights’‚ and she schemes to meet Clym by performing as a mummer. Fate 3: Clym also
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Risk and return are most important concepts in finance. Risk and return concepts are basic to the understanding of the valuation of assets or securities. Return expresses the amount which an investor actually earned on an investment during a certain period. Return includes the interest‚ dividend and capital gains: while risk represents the uncertainty associated with a particular task. In financial terms‚ risk is the chance or probability that a certain investment may or may not deliver the actual/expected
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1. Convert prices to total return (% change in the price) = (Pt – Pt-1) / Pt-1 2. Remove outliers – sort data and remove anything +/- 20% 3. Calculate historical average and historical risk X-BAR = Σx/n Calculate the sum of the total return and divide by the number of observations • Variance = σ2 = Σ(x – x bar) 2 / (n-1) Fix X-BAR‚ double click to apply to all dates‚ get the sum‚ divide by (n-1) Risk = σ = √σ = SQRT(Variance) = standard deviation 4. Average Matrix Excel Options
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FINANCIAL MANAGEMENT – I RISK AND RETURN ANALYSIS SUBMITTED TO DR. SUSHMA VISNANI BY ABHISHEK DAS AVANIKANT MISHRA DAUD QIDWAI ANKIT TRIPATHI APURBA PRASAD NATH CONTRIBUTION Our project deals with Banking industry. In the project the various banks which are taken into account are Allahabad Bank‚ Canara Bank‚ Punjab National Bank‚ State Bank of India‚ and Union Bank of India. Each of the group members took up each of the bank and did their respective analysis. The banks which were
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The Return‚ directed by Andrei Zvygiantsev‚ is a film that is ultimately about the evolving relationship between two brothers who had to grow up without a father. In the beginning of this film the brothers got in petty fights and didn’t take care of each other. The also had a hard time being independent and acting maturely. By the end of the film‚ the boys had learned that if they work together they are capable of surviving on their own and getting things done. They realize that they don’t need their
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Five Senses Analysis How would you use a focus group to establish the correct design of an event focusing on the five senses? “When attempting to satisfy the needs of guests‚ remember that the five senses are very powerful tools. Like five winning cards in the Event Leader’s hand‚ combining the five senses—tactile‚ smell‚ taste‚ visual‚ and auditory—to satiate the needs of guests is the primary consideration when designing the event environment. The olfactory system creates instant emotional and
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effect 2. (20 points) Consider the standard closed economy full employment model that we have studied – sometimes called the loanable funds model. Draw a graph illustrating the determination of the real rate of interest‚ as described by that model. Be sure to identify the names of each axis‚ and label the curves. Explain and illustrate on that graph what happens in the macro-economy if the level of government spending falls. - In that circumstance‚ what happens to: (explain real briefly) Real GDP
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