Find what is the sharp ratio

Assignment Help Financial Accounting
Reference no: EM132969620

Problem 1: Consider when you decide to invest 40% of your money in risky portfolio P( with the expected return of 25% and standard deviation of 20%) and invest 60% of your money into a treasury bill) the rate of the TBill is 5%). Assume that in thi s investment you use all the money you have on your own without borrowing from outside. What's the sharp ratio?

Option 1: 0.670

Option 2: 1.000

Option 3: 1.625

Option 4: 0.400

Reference no: EM132969620

Questions Cloud

Record the preceding transactions in a general journal : May 9 Made credit sales of $4,000; the cost of the inventory sold was $1,900. Record the preceding transactions in a general journal
Which do not follow the publication of the exposure draft : Which do not follow the publication of the Exposure Draft in the standard setting process? Post-Implementation Review (PIR)./ Public Consultation
What is cash account balance after the entries are posted : What is the cash account balance after these entries are posted? On January 1, the cash account had a normal balance of $13,000.
How much will be withdrawn at the end of each month : How much will be withdrawn at the end of each month as the account needs to last for 15 years and earns 4.9% compounded monthly
Find what is the sharp ratio : Assume that in thi s investment you use all the money you have on your own without borrowing from outside. What's the sharp ratio?
Prepare journal entries to record the transactions of SME : Prepare journal entries to record the transactions of SME from January 1 , 2020 to December 31, 2023
What are two considerations other than money : What are two considerations other than money that Flanders should think about before making the decision to make the component versus buying
Find what is the recoverable amount of the asset : Prior to sale the company would incur legal costs of £500. In accordance with IAS36, what is the recoverable amount of this asset?
Determine gain or loss to be recognized in profit or loss : Using both the cost model and fair value model, determine the gain or loss to be recognized in profit or loss for the year ended December 31, 2021

Reviews

Write a Review

Financial Accounting Questions & Answers

  Brown company purchases equipment

Brown Company purchases equipment costing $100,000 by signing a 3-month

  What was the market risk premium during the ten years

The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?

  Journalize the entries to record in the partnership accounts

Jesse and Tim form a partnership by combining,Journalize the entries to record in the partnership accounts Jesse's investment and Tim's investment

  Is the plan devised by spencer and the cfo ethical

Is the plan devised by Spencer and the CFO ethical? In answering this question, assume that Spencer and the controller are both firmly convinced

  How much revenue must comcom generate to earn

ComCom Company has fixed costs that total $1,225,000 per month.- How much revenue must ComCom generate to earn $840,000 in operating income next month?

  Compute the market value

Compute the market value of Renowned Cola's debt

  Estimate cash receipts for each month of the first quarter

Estimate cash receipts for each month of first quarter of 2021. Credit sales in December 2020 are expected to be $188,000. The company expects to collect 75%

  Calculate the balance in the deferred tax liability account

Bramble Ltd. began business on January 1, 2019. Calculate the balance in the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020.

  What rate of return are offering on the investment

Someone offers to sell to you a financial contract, If they will sell the contract for $900, what rate of return are they offering on the investment?

  What amount should be capitalized as cost of the machine

A P120,000 down payment was made and three-monthly installments of P360,000. What amount should be capitalized as cost of the machine

  How much goodwill is to be recognized

Polo Corporation purchased 80percentof Seed Company's common stock forP210,000. How much goodwill is to be recognized

  Determine the yield to maturity on each of the bonds

Suppose that the annual interest rate this year is 5%, and financial market participants expect the annual interest rate to increase to 5.5%next year to 6% two years from now and to 6.5% three years from now. determine the yield to maturity on each o..

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