What is the alpha of widget manufacturing

Assignment Help Financial Management

Reference no: EM131323929

1. Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the Treynor measure of Widget Manufacturing, Inc.?

0.1

0.11

1.6

0.48

2. Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the alpha of Widget Manufacturing, Inc.?

1.0%

3.0%

2.0%

4.0%

Reference no: EM131323929

Questions Cloud

Which loan has the lower after-tax cost : Karou is considering different options for financing the $12,000 balance on her planned new car purchase. The cheapest advertised rate among the local banks is 7 percent for a 48-month car loan. Which loan offers lower monthly payment? Which loan ha..

What is its self-supporting growth rate : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,700,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

How much will be in the account at end of that time period : Johnny plans on depositing $8,000 into an account earning 3% per year at the end of each of the next 15 years. How much will be in the account at the end of that time period?

The net present value of this project given required return : A project will produce operating cash flows of $45,000 a year for four years. During the life of the project, inventory will be lowered by $30,000 and accounts receivable will increase by $15,000. At the end of the project, net working capital will r..

What is the alpha of widget manufacturing : Widget Manufacturing, Inc. has an average return of 17%, a beta of 1.6, and a standard deviation of 33%. You know the risk-free rate is 1% and the market return is 8.5%. What is the Treynor measure of Widget Manufacturing, Inc.? Widget Manufacturing,..

Half year straight line depreciation method : Consider a project that has 6 years of life time. This project requires investment of $1,000,000 at time zero for machinery and equipment to be depreciated over 5 year with half year straight line depreciation method (starting in year 1 to year 6). C..

About the risk of investing in badger championship : Assume Badger Championship, LLC has a CAPM beta of 0, the risk free rate is 1.0%, and the expected return on the market portfolio is 8.2%. You also know that Badger Championship, LLC has a standard deviation of 38.2%. Given its standard deviation and..

Employment contract with its newly hired : Holiday Tours (HT) has an employment contract with its newly hired CEO. The contract requires a lump sum payment of $23 million be paid to the CEO upon the successful completion of her first three years of service. HT wants to set aside an equal amou..

A foreign exchange rate : A foreign exchange rate is:

User Account

All Pages