Describe the daily return of three stocks

Assignment Help Finance Basics
Reference no: EM133061594

Some investors use the Sharpe ratio as a way of comparing the benefits of owning shares of stock in a company to the risks. The Sharpe ratio of a stock is defined as the ratio of the difference between the mean return on the stock and the mean return on government bonds (called the risk-free rate rf ) to the SD of the returns on the stock.

The mean return on government bonds is rf = 0.03% per day.

The table below describes the daily return of three stocks.

Reference no: EM133061594

Questions Cloud

Compute total cost of units transferred to finished goods : Compute the total cost of units transferred to finished goods using average costing assuming that the lost units were spoiled at the start of processing
Calculate monthly payments : A fully amortizing mortgage loan is made for $82,000 at 6 percent interest for 25 years. Payments are to be made monthly.
Potential for politicizing impeachment process : Given the potential for politicizing the impeachment process, except in cases of treason and capital crimes (e.g., first-degree murder),
What is the maximum internal growth rate : If the return on assets is 15% and the dividend par out ratio is 50%, what is the maximum internal growth rate
Describe the daily return of three stocks : Some investors use the Sharpe ratio as a way of comparing the benefits of owning shares of stock in a company to the risks. The Sharpe ratio of a stock is defin
Predict the nominal interest rate : The nominal interest rate in Australia is 6%. What does the Fisher effect predict the nominal interest rate in the United States to be?
What is Web Map Service : What is a Web Map Service? Give an example. Discuss a geoprocessing tool. Pick any one but the Buffer tool.
Stock price after the capital structure change : Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It announces that it intends to iss
Calculate the company cash conversion cycle : The company has annual sales of P10 million, a cost of goods sold of 75% of sales, Calculate the company cash conversion cycle

Reviews

Write a Review

Finance Basics Questions & Answers

  Your employer contributes 75 a week to your retirement

your employer contributes 75 a week to your retirement plan. assume that you work for your employer for another 20

  What is the effective borrowing cost

What is the connection between the Truth-in-Lending Act and the annual percentage rate (APR)?- What is the effective borrowing cost?

  Potential rental income and capital gains from properties

Robert is an actuarial analyst at one of the Big Five consulting firms in Canada and he has been living with his family to save money. He will turn 35 years of

  Alternative models of organisational capabilities

Define organisational capabilities and discuss two alternative models of organisational capabilities.

  Should you sell the machine or keep it

Should you sell the machine or keep it? If you must commit to a posted price, what price maximizes profit?

  What is the wacc if gallaghers total capital expenditure

What is the WACC if Gallagher's total capital expenditure is expected to be $8.5 million?

  Compute the net advantage to leasing

As a consultant you were asked to evaluate a lease versus buy analysis on the purchase of a new front end cash register system for a clothing store called More

  Change in amount of money over the previous year

Which account recorded a greater percentage change in amount of money over the previous year? Justify your answer.

  Identity can be traced back to the balance sheet

Cash Flow From Assets (CFFA) = Cash Flow to Creditors (CF/CR) + Cash Flow to Stockholders (CF/SH)

  Psychological aspects of risk management important

Are the social psychological aspects of Risk Management important? What's more important: Assessing who becomes a terrorist or how to control victims'.

  Discuss the dynamics of the market

Market conditions / competitive environment. Discuss the dynamics of the market - its players, how they interact

  Super jackpot lottery

You recently won the super jackpot lottery. You discover that you have the following two options: (a) You receive 31 annual payments of $160,000

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