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posledela
3 years ago
6

homeworklib You want to evaluate three mutual funds using the information ratio measure for performance evaluation. The risk-fre

e return during the sample period is 6%, and the average return on the market portfolio is 19%. The average returns, residual standard deviations, and betas for the three funds are given below. Average Return Residual Standard Deviation Beta Fund A 20 % 4.00 % 0.8 Fund B 21 % 1.25 % 1.0 Fund C 23 % 1.20 % 1.2 The fund with the highest information ratio measure is Multiple Choice Funds A and C (tied for highest). Funds A and B (tied for highest). Fund A. Fund C. Fund B.
Business
1 answer:
bezimeni [28]3 years ago
5 0

Answer:

The fund with the highest ratio is Fund B.

Explanation:

Risk-free return = 6%

The average return on the market portfolio = 19%

The ratio equation formula is as follows:

FUND A: Return on fund - Risk free rate - Beta (Return on market portfolio -  Risk free rate)/Standard deviation of fund

FUND A : 20 - 6 - 0.8(19 - 6 ) / 4 = 0.9

FUND B : 21 - 6 - 1(13)/1.25 = 1.6

FUND C : 23 -6 - 1.2 (13 ) /1.2 = 1.167

Therefore, the fund with the highest ratio is Fund B.

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Answer:

right to private property and inheritance

Explanation:

The capitalistic system states that individuals are allowed to own their and enjoy their own personal property. In each country laws generally subordinate the right to private property to the well being of society.  

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In this case, Chet is entitled to own his landscaping business (private property) and when he passes away his son, Josh, will inherit it.

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3 years ago
Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m
tia_tia [17]

Answer:

Direct labor rate variance= $1,666 favorable

Explanation:

Giving the following information:

The company produced 5,200 units in January using 2,380 direct labor-hours.

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<u>To calculate the direct labor rate variance, we need to use the following formula:</u>

<u></u>

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3 years ago
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 350 employees and Bottling has 350 employees. Indi
krok68 [10]

Answer:

Allocated administrative cost for mixing is $81000

And allocated administrative cost for for bottling is $81000

Explanation:

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And total number of employs for bottling = 350

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klasskru [66]

Answer:

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Explanation:

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