1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A car dealer wants to get rid of the stock of last year's model. Assume that the dealer knows from past experience that the pric
Pie

Answer: $6,600

Explanation: According to the question, The price elasticity of demand for cars is unitary meaning that any percentage increase or decrease in price of a product will give an equal increase or decrease in the demand for the product.

If cars are sold at $20,000 and current sales is 30 units. To increase the quantity sold to 50 units, there must be a price reduction.

what percentage of increase in quantity to be sold do we have? 50 - 30 = 20

20/30 = 66.67 appx 67%

Meaning that a 67% decrease in price of the car will give an equal 67% increase in sales quantity.

The new price of the car will be $20,000 * 67% = $13,400

new price = $20,000 - $13,400 = $6,600

7 0
3 years ago
Read 2 more answers
The management of Elamin Corporation is considering the purchase of a machine that would cost $365,695 and would have a useful l
sergey [27]

Answer:

Internal Rate of Return (IRR) 9,00%

Explanation:

We use excel or a spreadsheet to calculate this ratio. See document attached.

We use a cash flow to solve this problem.

At moment 0 we have the investment cost , in this case  $365,695. From period 1 to period 9, we have incomes o benefits of $61,000. Then, we calculate the Net cash flow that is the difference between benefits and cost.

We use all the result (positive and negative) in Net cash flow to get the IRR.  

Download xlsx
5 0
3 years ago
Culver owns 80 percent of the common stock of Fowler Company. Culver also purchases some of Fowler's bonds directly from Fowler
ratelena [41]

Answer:

c

Explanation:

3 0
3 years ago
In terms of microeconomic analysis, what is the function of utils?.
makvit [3.9K]

Answer:  a measurement of utility

Explanation:

7 0
2 years ago
n computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adap
kykrilka [37]

Answer:

C. current period costs less cost of beginning work-in-process inventory

Explanation:

While calculating the current period manufacturing under FIFO method the cost of beginning work in process will be deducted as was incurred in previous period, for the current period only the current period cost will be considered.

Though the FIFO method is based on first in first out principle where opening inventory will be sold first, but the cost incurred earlier in previous period will not be considered.

Correct statement is C

3 0
3 years ago
Other questions:
  • Using positive self-talk is a great way to
    14·2 answers
  • A company projects an increase in net income of $30000 each year for the next five years if it invests $300000 in new equipment.
    7·1 answer
  • Tom Brown decided to purchase a new bike on installment loan the bike was $300 he agreed to pay $30 a month for 12 months what i
    15·1 answer
  • ​"Baxton Courier Services recently gave all its employees electronic tablets to accurately track the whereabouts of its ​shipmen
    12·1 answer
  • g Suppose a carton of hockey pucks sell in Canada for 105 Canadian dollars, and 1 Canadian dollar equals 0.71 U.S. dollars. If p
    5·1 answer
  • Which of the following statements about cover letters is false?
    15·2 answers
  • How do you make money in the stock market?
    10·2 answers
  • Jackson Corporation owns 10% of the voting stock of Kettering Company and has been reporting it as an equity investment with no
    8·1 answer
  • Anyway hi, I'm Janis Ian/Janis Sarkasian, Mean Girls movie/musical introject, pronouns are she/sketch, I identify as a girl, and
    7·2 answers
  • What measures the amount of time visitors spend on a website or application?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!