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differentiate between returns to scale and constant return to scale

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16y ago

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What constitutes a constant growth stock and how it is value?

What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.


What is the difference between law of return to variable proportion and law or return to scale?

There is a big difference between both the laws.The basi difference between them is that i dont know 1st but i know the 2nd one


What is the difference between variable proportions and returns to scale?

what is relationship between change in input and output. In the return's to scale (long term concept) all the factor are variable but in the variable proportions are some factor variable and some factors are fixed.


Difference between return to factor and return to scale?

Return to factor The return attributable to a particular common factor. We decompose asset returns into a common factor component, based on the asset's exposures to common factors times the factor returns, and a specific return. Return to scale An economic concept referring to a situation in which economies of scale no longer function for a firm. Rather than experiencing continued decreasing costs per increase in output, firms see an increase in marginal cost when output is increased.


What is the relationship between risk and return in investment decisions?

The relationship between risk and return in investment decisions is that generally, higher returns are associated with higher levels of risk. Investors must weigh the potential for greater returns against the possibility of losing money when making investment decisions.

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What is the difference between returns and profit?

return is calculate against investment. profit is calculte against cost.


Difference between subroutine and function?

Both A function and a Sub carry out a procedure, but only A function returns a result while a Sub does not return a result.


What is the difference between return on equity and return on net worth?

Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)


What is the difference between the sales return and purchase return?

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What are the Merits and demerits of promissory notes?

higher liquidity, constant assured return on your investment lower returns compared to other investments


What constitutes a constant growth stock and how it is value?

What constitutes a constant growth stock is a stock that has dividends that are expected to grow at a constant rate. The formula used to value a constant growth stock is determined by the estimated dividends that will be paid divided by the difference between the required rate of return and growth rate.


What is the difference between law of return to variable proportion and law or return to scale?

There is a big difference between both the laws.The basi difference between them is that i dont know 1st but i know the 2nd one


How do you compute the risk-adjusted return on an investment?

The risk-adjusted return is a measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. The Sharpe Ratio is calculated as the difference between the mean portfolio return and the risk free rate (numerator) divided by the standard deviation of portfolio returns (denominator).


How do you calculate Excess Returns?

Excess Returns is the difference between what was gained on a risky investment, versus what one would have gained if they had not taken the risky investment and instead had invested in a risk-free investment. Any more they made taking the risk than they would have otherwise is considered to be a positive excess return.


What is the difference between variable proportions and returns to scale?

what is relationship between change in input and output. In the return's to scale (long term concept) all the factor are variable but in the variable proportions are some factor variable and some factors are fixed.


Difference between return to factor and return to scale?

Return to factor The return attributable to a particular common factor. We decompose asset returns into a common factor component, based on the asset's exposures to common factors times the factor returns, and a specific return. Return to scale An economic concept referring to a situation in which economies of scale no longer function for a firm. Rather than experiencing continued decreasing costs per increase in output, firms see an increase in marginal cost when output is increased.


What is the difference between return on investment and return on assets?

They are one and the same and they are used interchangeably.