Shawn Earned an Average Return of 14

question 44

Essay

Shawn earned an average return of 14.6 percent on his investments over the past 20 years while the S&P 500,a measure of the overall market,only returned an average of 13.9 percent.Explain how this can occur if the stock market is efficient.

---

Definitions:

Activity-Based Costing

An accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Time-Driven

refers to a methodology where tasks or processes are estimated and evaluated based on the time they take to complete.

Activity-Based Costing

A pricing strategy that recognizes activities conducted in a company and apportions the cost of each activity across all services and products, reflecting their real consumption.

Receiving Calls

The process of answering incoming telephone calls, often associated with customer service or technical support departments.