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Alexxandr [17]
3 years ago
15

You are comparing three securities and discover they all have identical Treynor ratios. Given this information, which one of the

following must be true regarding these three securities?
A. They have identical betas.
B. They have the same rates of return.
C. They earn identical rewards per unit of total risk.
D. They earn identical rewards per unit of systematic risk.
E. They have identical Sharpe ratios also.
Business
1 answer:
Ede4ka [16]3 years ago
7 0

Answer: The correct answer is "D. They earn identical rewards per unit of systematic risk.".

Explanation: If you are comparing 3 values and by calculating, find that they all have the same Treynor ratio means that they earn identical rewards per unit of systematic risk.

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Assume that the market for soybeans is perfectly competitive. Currently, firms growing soybeans are experiencing economic profit
slava [35]

Answer:

Option (A)

Explanation:

In a perfectly competitive market condition, there are large number of buyers and sellers. The price of the products is determined by the market forces. If the firms in this market experiencing the economic profits then this will give an incentive to the new firms to enter into the market of soybeans.

Therefore, the new enters to earn profits and hence there is an increase in the number of firms in the market. This will lead to a decrease in the market price of the soybeans because of the increased competition among the firms.

7 0
4 years ago
Bill wants to give Maria a $630,000 gift in 3 years. If money is worth 6% compounded semiannually, what is Maria's gift worth to
olga_2 [115]

Answer:

$527,615.08

Explanation:

The formula that describes the present value of an investment compounded semiannually is:

PV = \frac{FV}{(1+\frac{r}{2}^{(2*t)})}

For a future value of $630,000 obtained at a 6% annual rate for 3 years, the present value is:

PV = \frac{630,000}{(1+\frac{6}{2}^{(2*3)})}\\PV=\$527,615.08

Maria's gift is worth $527,615.08 today.

5 0
3 years ago
the life isnurance policy in which dealth benefits last a lifetime but premiums are all paid after a specified time period is an
rusak2 [61]

The life insurance policy in which death benefits last a lifetime but premiums are all paid after a specified time period is a limited-pay whole life policy.

5 0
3 years ago
Viral marketing strategies have always been developed with the assumption that the company would communicate with potential cust
lara31 [8.8K]

Answer: False.

Explanation:

Viral marketing is a form of marketing where information about a product or brand is made to spread very quickly among a consumers within a short period of time, with the aim that the popularity of the product would increase sales. In viral marketing the company is not directly involved in communicating with their customers, but rather communication is done on their behalf.

4 0
3 years ago
An llc is formed when a general partnership files a statement of qualification with the appropriate state official. true or Fals
vova2212 [387]

Answer:

True

Explanation:

A LLC, or Limited Liability Company is a company that providesliability protection to those that form it, and is formed when a group of persons file articles of organization which are also known as certificate of corporation, and they have to file those documents in the secretary of state´s corporation bureau.

4 0
3 years ago
Read 2 more answers
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