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Firlakuza [10]
3 years ago
6

​A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return i

s 4 percent, and the stock's beta is 1.5. What is the Treynor index for the stock?
Business
1 answer:
svet-max [94.6K]3 years ago
4 0

Answer:

The Treynor index for the stock will be 0.02.

Explanation:

The average return of the stock is 10%.

The average risk-free rate is 7%.

The standard deviation of the stock's return is 4%.

Stock's beta is given at 1.5.

Treynor index

= (Portfolio return- risk free return)/beta of the portfolio

=(0.10-0.07)/1.5

=0.03/1.5

=0.02

So, the Treynor index for the stock will be 0.02.

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True or false: production runs can be scheduled in one or two shifts.
irina1246 [14]
The answers are as follows:
1. TRUE.
Shift schedule is a practice used in manufacturing industries to increase the numbers of hours that is used in production process. The shift divides the hours in the day into specific period and assign teams that will work during each period. The shift practice is usually employed in production run in order to ensure efficient use of all resources during the production process. Production run are typically schedule into one or two shifts; which may be during the day alone or during the day and night.
2. FALSE
Hiring the needed complement will eliminate OVERTIME, not the second shift. Hiring the needed complement usually remove the need for all overtime. Hiring the needed complement will make having a second production run team possible and this second team can handle the production process that ought to be done through overtime.
3. FALSE.
It is the duty of the management to strive to DECREASE STAFF TURNOVER.
Staff turnover refers to the rate at which employees are leaving a company and new employees are been absorbed. High staff turnover will make the company to spend more money on resources and training of new staffs.  
4. TRUE.
During periods of high demand, production usually increases and more workers are hired. Instead of hiring more workers, a company that has two production shifts may decide to add more workers to the first shift in order to increase the amount of work that could be done. This will result in the decrease in the number of the workers in the second shift.
5. FALSE
Increasing training hours decreases needed complement. Increasing the training hours will equip the workers with the needed knowledge which will make them more effective and productive. This will decreases the complement needed for the production process.
6. RECRUITING COST [B].
In a situation where a company has to hire more workers to the one it already has on ground as a result of increased production, then the company will have to spend extra money in the process of recruiting the needed workers.
7. DECREASE [B]
If the productive index is already at 100%, adding overtime will decreases the productivity index. This is because, overtime has a way of reducing the efficiency and the productivity of the workers, thus decreasing the amount of work done by them.
8. FALSE.
Workers training is entered in hours. The amount of training received by workers are measured in hours. The higher the training hours, the higher the amount of training which a worker has undergone and the higher will be the value of that worker to the company.
9. C
Each company is expected to have a base amount of $1,000 for each new worker that is hired. The company may decide to eliminate all other recruiting costs but this base amount can not be eliminated.
10. SEPARATION COST [C].
Separation cost are incurred when production level decreases and/ or automation level increases.
Separation cost refers to the cost that is needed to lay off an employee from an organisation. When the production level decreases or the company decide to automate their production processes, then some workers will have to be sacked and these workers have to be paid some money before they leave the company. This result in increase in the amount of money that the company will spend on separation cost.
8 0
3 years ago
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J
jasenka [17]

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

5 0
2 years ago
Elevators, Inc. does considerable business overseas for high-rise luxury hotels. To speed up the building permit process, it aut
AleksAgata [21]

Answer:

No, Elevators, Inc. has not broken the law because payment was made in United States currency.

Explanation:

It operates a substantial business abroad for high-end luxury hotels. It authorized a project manager to "charge" a government official a charge of 500 for speeding up the building permit process. so

  • Under the law, it is illegal to bribe foreign officials to get business. But there is an exception to "facilitation payments", also known as grease payments made to speed up general government functions.
  • Flexible payments can be used to persuade government officials to perform work that is already being done. Although many have argued that such payments are important for their operations in some areas, such as Asia and Africa, the difference between facility payment and bribery remains unclear.

3 0
3 years ago
Compute the dollar amount of working capital that can be reduced at year-end if the ending heel raw material inventory is cut by
erica [24]

Answer:

Note: The full question is attached as picture below

a.                                               No of units Cost per unit   Total Cost

Beginning Inventory      1,200                     $8            $9,600  

Add Purchase                            35,000                  $8            $280,000  

Inventory available for              36,200                  $8             $289,600  

production

Less Inventory transferred to    33,200                 $8             $265,600  

production  (16,600 Pairs*2 Heels)

Ending Inventory                        3,000                  $8             $24,000

b. Working capital will be reduced by: (3,000*$8)/2 = $12,000

4 0
3 years ago
Imputed interest rules apply to term loans or demand loans in which the interest rate is less than the Applicable Federal Rate (
vlada-n [284]

Answer:

A) Gift loans of $14,000 in which interest foregone is in the form of a gift.

Explanation:

You are free to give anyone any type of gift that is worth up to $14,000, this includes gifts in cash, assets (e.g. car) or gift loans. Any gift above that threshold will result in taxes paid by the person that receives the gift.

The IRS defines gift loans under Section 7872(f)(3) as:

<em>“The term “gift loan” is any below-market loan where the forgoing of interest is in the nature of a gift.”</em>

As long as the forgone interest doesn't exceed $14,000, then no taxes should be paid.

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3 years ago
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