According to the sharpe ratio

Assignment Help Financial Management
Reference no: EM13921457

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. According to the Sharpe ratio, which fund performed better?

Reference no: EM13921457

Questions Cloud

Analyze the merits of the cause of action : Explain the basis for the cause of action, and analyze the merits of the cause of action, employer defenses, and likely outcome. Support your response with applicable law.
Market unique products for varied customer groups : Firms that follow this type of generic strategy can sometimes have difficulties succeeding without compromising the key attributes of a company's products or services.
Charge of the company first international expansion : Change Model Assignment.  Imagine that you are an executive for XYZ, Inc., a high-end retail chain that sells luxury watches, jewelry, and hand bags.  You've just been put in charge of the company's first international expansion, opening a store i..
Define the term dominant culture : Define the term "dominant culture", and in your own words give an example of an aspect of dominant culture in current American society
According to the sharpe ratio : Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. According to the Sharpe ratio, which fund performed better?
Identify the company with the greater financial risk : Compute each company's debt to assets ratio, current ratio, and times interest earned (EBIT must be computed). Identify the company with the greater financial risk.
Deviate from market portfolio and purchase value stocks : Will my belief in rational vs behavioral explanation affect whether I should deviate from market portfolio and purchase value stocks?
Why do you think sears wants to reinstall commissions : Why do you think Sears wants to reinstall commissions for its salespeople? Do you think that the new safeguard that separates diagnosing problems from selling services will prevent a recurrence of past problems? Explain.
Food and beverages from contract-managed food providers : All of us have consumed food and beverages from contract-managed food providers (e.g.,school cafeteria, theaters, sporting events, airline, etc.).

Reviews

Write a Review

Financial Management Questions & Answers

  What is the value of company based on correct calculation

LIS Company has $50 million in long-term debt, $75 million in shareholder’s equity [both figures are market value basis]. The cost of equity is 14%, cost of long-term debt is 12% and the tax rate is 25%. What is the weighted average cost of capital [..

  Stock has performed in the short term and the long term

In two paragraphs describe how Procter and gambles stock has performed in the short term and the long term. Discuss the trends and offer opinions as to why the stock has performed the way it has.

  Research a publicly held company of your choice and access

research a publicly held company of your choice and access the companys web page on the internet to read its most

  Uses a straight line depreciation schedule

A firm is evaluating a project which will cost $7,586 today and provide additional cash flows in years 1, 2, 3 and 4 of $5,568, $2,586, $2,586, and $7,560, respectively. The project will also employ $5,000 in working capital during the life of the pr..

  What is the nominal yield to call

You have the following bond: $10,000 par value, Coupon of 8.5%, semi-annual compounding, Maturity of 13 years, MKT Rate of Interest of 11.65%. Bond is callable in 6 years with a Call Premium of $500. What is the Nominal Yield to Call?

  The common stock of auto deliveries sells

The common stock of Auto Deliveries sells for $26.96 a share. The stock is expected to pay $1.90 per share next year when the annual dividend is distributed. Auto Deliveries has established a pattern of increasing its dividends by 4.7 percent annuall..

  Coalition tactics

Coalition tactics

  Calculate the payback period and the NPV

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $840 per set and have a variable cost of $440 per set. The company has spent $154,000 for a marketing study that determined the company will sell 58,000 sets per year ..

  What is the cost of preferred stock-risk-free rate

The 8.50 percent preferred stock of Ajax Unlimited is selling for $92.30 a share. What is the cost of preferred stock if the risk-free rate is 3.95 percent?

  Distributed to expendable funds entire income earned

The Nebraska Institute of Science (NIS) pools all of its endowment funds so that it can obtain the benefits of a large and diverse investment portfolio. Suppose NIS charged depreciation and distributed to expendable funds the entire ‘‘income’’ earned..

  Call option on exxon at a premium

On January 11, 2015, I purchased a call option on Exxon at a premium of $14.5, exercise price of $50 and March 15, 2007 maturity. On January 21,2015, I closed my position by buying a put option on Exxon at a premium of $8.5, exercise price of $50 and..

  What would be the expected return on a stock

What would be the expected return on a stock given the following: the rate of return on 1 year CD's is 2%, the return on 90 day T-Bills is 4%, the return on 10 year T-Bonds is 7%, the Prime is 8%, the return on the S&P 500 is expected to be 12%, your..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd