Estimate the quarterly excess return

Assignment Help Accounting Basics
Reference no: EM132956745

Question: You are told that Land's End, a catalog retailer, earned an excess return (Jensen's alpha), in annualized terms, of 0.38 over the last 5 years and that it had a beta of 1.5 during the same period. Assuming that this estimate came from a quarterly regression of stock returns against a market return and that the average annualized risk-free rate during the period was 0.042

Estimate the quarterly excess return.

Reference no: EM132956745

Questions Cloud

What does it mean in terms of the capacity allocation : What does it mean in terms of the capacity allocation? The Littlewood's Rule indicates that the optimal protection level is determined
Identify two financial key performance indicators : Identify two Financial Key Performance Indicators and explain how they will help the business to monitor the success of the business.
How do provide an analysis of spms : Provide an analysis of SPMS. Its intended application, effectiveness, or shortcomings as performance measurements. Find articles that cite companies' actual
What is the nal of the lease : You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equip
Estimate the quarterly excess return : Estimate came from a quarterly regression of stock returns against a market return and that the average annualized risk-free rate during the period was 0.042
Calculate the minimum net business income : Calculate the minimum Net Business Income for the partnership's current year and indicate the amount that will be added to each partner's Net Income for Tax Pur
Explain one way a corporate board member might engage : Explain one way a corporate board member might engage in inappropriate ethical behavior, and explain why it could be a problem for the company
Calculate the present value of a perpetuity : Question. Can we calculate the present value of a perpetuity that last forever? If so, what is the formula for that and please provide an example.
Determine the break-even point in sales units for ramirez co : Ramirez Company, Determine the break-even point in sales units and the sales units required for the company to achieve a target profit of $500,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount should grant include in income statement

Grant, Inc. acquired 30% of South Co.'s voting stock for $200,000. What amount should Grant include in its 2015 Income Statement as a result of the investment?

  Discuss how and when the concept could be used by eec

Determine what affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost.

  Prepare the cash budget for each of the three months

Prepare the Cash Budget for each of the three months November 2018, December 2018 and January 2019. The budget should be in columnar format

  Which have impact on the strategy of a long-haul trucking

Which of the following stakeholders is most likely to have the least impact on the strategy of a long-haul trucking distribution company?

  Record the exercise of the conversion option

Prepare in general journal form the entry to record the exercise of the conversion option, using the book value method

  Discuss what is the current stock value

the company will maintain a constant 5% dividend growth rate forever. If the required return on the stock is 11%, what is the current stock value

  Compute the capitalizable borrowing cost

Jojo Company loaned P 2,500,000 from the bank for a construction of a building during the year 2020. Compute the capitalizable borrowing cost

  Domestic production activities deduction anniken cassi

domestic production activities deduction anniken cassi operating as a sole proprietor manufactures digital cameras in

  Percieved value to decision makers

If a publicily traded company is trying to maximize its percieved value to decision makers external to the corporation, the company is most likely to understate which of the following on its balance sheet?

  Jacques company planned to use 18000 pounds of materials

jacques company planned to use 18000 pounds of materials costing 2.50 per pound to make 4000 units of its products. in

  Calculate the standard absorption cost of a package

The foam pad that is put in the case costs $.06, Calculate the standard absorption cost of a package of 10 stamp pads

  How much cash interest will advance receive each year

The FermaCo bonds pay interest at the annual rate of 3% on June 30 and December 31 - How much cash interest will Advance receive each year

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