which:     successful strategies will not be reflected in accounting profits for a number of periods.     the price/earnings ratio is commonly greater than 12.     profits may be the

Trustees of the Pallor Corp. pension plan ask consultant Donald Millip to comment on the following statements. What should his response be?a. Median manager benchmarks are statistically unbiased measures of performance over long periods of time.b. Median manager benchmarks are unambiguous and are therefore easily replicated by managers wishing to adopt a passive/indexed approach.c. Median manager benchmarks are not appropriate in all circumstances because the median manager universe encompasses many investment styles.

Agency theory suggests that one way to motivate managers to act in the best interests of the owners/shareholders is to link managerial compensation to firms' payoffs, such as net income or share returns. However, such a linkage imposes risk on the manager. Required: (1) Why is it important to control or reduce some of the risk thus imposed on managers? Explain. Discuss two methods by which risk imposed on the managers could be reduced.

A form of implicit collusion where one firm in an oligopoly announces a price change which is matched by other firms in the same industry is retaliation pricing. price leadership. "follow the leader" pricing. "tit-for-tat" pricing.