Explain high sales-to-price ratios

Assignment Help Finance Basics
Reference no: EM133062272

A portfolio manager finds that stocks with high sales-to-price ratios tend to have low alpha's relative to the US Market - especially when stocks have had a high run-up (increase) in price over that past 5 years. Which one of the following has she most likely replicated? (Hint: not all statements are true.) (Choose one. No explanation necessary)

A) Small stocks tend to have low alphas.

B) Low beta stocks tend to have low alphas.

C) Low earnings stocks tend to have low alphas.

D) Past 3-12 month loser stocks tend to have low alphas.

E) Growth stocks tend to have low alphas.

Reference no: EM133062272

Questions Cloud

Determine the breakeven point in sales dollars : Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Determine the breakeven point in sales dollars
What is the cost of equity from retained earnings : Teall development company hired you as a consultant to help them estimate its cost of capital you have been provided with the following data
Identify a profitable investment or course of action : Which is a fallacy of solely using the capital budgeting process to identify a profitable investment or course of action?
What is the value of one stock of xyz today : You have a portfolio that consists of 2000 stocks of XYZ, 1000 stocks of ABC and 100 corporate bonds. XYZ has just paid a dividend of $10 and it is estimated th
Explain high sales-to-price ratios : A portfolio manager finds that stocks with high sales-to-price ratios tend to have low alpha's relative to the US Market - especially when stocks have had a hig
What was the total weighted average accumulated expenditure : What was the total weighted average accumulated expenditure for the Venetian project? What was the weighted average interest rate on general debt
Calculate waccs based on biok market : Bolsters food balance sheet shows a total of 25 million long term debt with a coupon rate of 8.50 the yield to maturity on this debt is 8.00 and the debt has a
Provide an off-balance sheet method : If a bank has a positive Repricing GAP, how can swaps be used to provide an off-balance sheet method to hedge interest rate risk? In other words, what would you
Concept of tokenization : We explored the concept of Tokenization. Three important protocols discussed were Secure Multi-Party Computation (SMPC),

Reviews

Write a Review

Finance Basics Questions & Answers

  How much cash did wing corporation receive from its ipo

The gross spread is $4. After completing their sales efforts the underwriters determine that they were able to sell a total of 33,750 shares. How much cash did Wing Corporation receive from its IPO?

  Which plan is better if the future income tax rate is given

A Roth IRA enables an individual to invest after-tax dollars during the accumulation phase of a retirement plan.

  Which of the below are considered cash management techniques

Which of the below are considered cash management techniques?

  Calculating tcm free cash flows

TCM Petroleum is an integrated oil company headquartered in Fort Worth, Texas. The following are the information on its income statements for 2007 and 2008 (all dollar figures are in millions): Calculate TCM's free cash flows (FCF) for 2007 and..

  Find the wacc of the company

Badger Corp. has an issue of 6% bonds outstanding with 6 months left to maturity. The bonds are currently priced at $998, and pay interest semiannually.

  Credit history and reports

1.There are three main credit reporting bureaus -- Equifax, Experian, and TransUnion. How frequently can you request and receive a free credit report from each

  Stock price at which shawna would break even

The stock is presently priced at $29, and rises to $32 before the expiration date. What is the stock price at which Shawna would break even?

  What is appropriate value per share

Bill recently died, and you are in the process of valuing assets for inclusion in his gross estate. Bill was a day trader by occupation and owned XYZ Stock, lis

  Compute the price of a zero-coupon bond

Compute the price of a zero-coupon bond (ZCB) that matures at time t = 10 and that has face value 100.

  Calculate the option profit to the trader

At the expiration, the stock price becomes $18.99. Calculate the option profit to the trader.

  Describe the method you would use to convert the key

The basic annuity valuation equation can handle situations in which there is compounding more frequently than once a year.

  What is the spot rate for the british pound

What is the spot rate for the British pound (GBP) on Wednesday in terms of the U.S. dollar (USD)? Or, from the U.S. perspective, what is the direct quote on pounds?)

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