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
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.

You might be interested in
A consultant predicts that there is a 25 percent chance of earning $500,000 and a 75 percent chance of earning $100,000. The exp
antiseptic1488 [7]

Answer:

$173,205

Explanation:

According to the scenario, computation of the given data are as follows:

Given data:

Earning (X1) = $500,000

Chances of X1 (Y1) = 25%

Earning (X2) = $100,000

Chances of X2 (Y2) = 75%

Expected Profit (Z) = $200,000

Formula for solving the problem are as follows:

Standard deviation = [ (X1 - Z)^2 × Y1 + (X2 - Z)^2 × Y2 ]^1/2

By putting the value in the formula, we get

Standard deviation = [ ($500,000 - $200000)^2 × 0.25 + ($100,000 - $200,000)^2 × 0.75 ]^1/2

= [ $22,500,000,000 + $7,500,000,000 ]^1/2

= ($30,000,000,000)^1/2

= $173,205.08 or $173,205

Hence, $173,205 is the correct answer.

6 0
3 years ago
Marty's, a clothing company, has a number of outlets that are owned and managed by private individuals. These outlets are allowe
Leya [2.2K]
Franchise Fee is the anwser
6 0
3 years ago
Read 2 more answers
Which of the following is not true in regard to selling fixed assets?
hichkok12 [17]
Your answer is C. Accumulated Depreciation will be credited. :D
5 0
3 years ago
A ___________ plan can help you identify steps needed to restore a failed system. business continuity disaster recovery risk man
Alex777 [14]

Answer:

Disaster recovery plan

Explanation:

Disaster recovery plan (DRP), it is a plan or approach which is structured as well as documented, states how the organization or business could resume work after the unplanned incident happen.

It is the vital part of the business as depend on the functioning of IT, it aims to resolve the loss of data and also recover the system functionality so that the could perform well after incident.

So, DRP, could help in recognizing the steps required to restore the failed system in the business.

7 0
3 years ago
The _____ is a production period long enough for the firm to adjust the
EastWind [94]

Answer:

long run, productive resources

4 0
3 years ago
Other questions:
  • The fourth step of the marketing research approach is to __________.
    7·1 answer
  • What is customer service? A. interacting with customers B. interacting with employees in a company C. researching people’s wants
    9·2 answers
  • you inherit $10,000 with the stipulation that you for the first year the money must be invested in two stocks paying 6% and 11%
    10·1 answer
  • Kermit bought a production line 5 years ago for $35,000. At that time it was estimated to have a service life of 10 years and sa
    12·1 answer
  • Producers sell goods or services for a profit. True False
    13·2 answers
  • At December 31, 2018 and 2017, G Co. had 60,000 shares of common stock and 11,000 shares of 5%, $100 par value cumulative prefer
    5·1 answer
  • a. Create the most efficient way to move products from producer to consumer b. Create a network of suppliers, intermediaries and
    7·1 answer
  • Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The follo
    11·1 answer
  • In March, Nigel agrees to sell manufactured goods to Marilyn, who agrees to pay for the goods by a promissory note, payable in s
    9·1 answer
  • Which of the following is an investigator’s commitment to the sponsor?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!