Marriott is part of your resort hotel businesses. Most of them usually do not present the resort with free of charge rooms, which implies that the cost of the rooms does not come no cost.
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e. CAGR (compound average expansion return). A capital investor is definitely serious about The web return received year following 12 months, Hence use of geometric is much more appropriate. Consequently we might use geometric average for hazard totally free fee original site and risk quality for each with the a few divisions, as given in exhibit five of your case.
Short term returns on Treasury Charges need to employed as basis for restaurant’s and deal services division’s hazard cost-free fee and chance quality for the reason that Those people assets experienced shorter practical life. This should also be the from 1926-1987 (exhibit 5 in the case).
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