Answer:
Sharpe ratio = 0.20
Treynor ratio = –0.005
Explanation:
Note: See the attached excel file for the calculations of average rate of returns, standard deviations and beta used in the calculation below.
a. Calculation of Sharpe ratio
Sharpe ratio refers to a investment measurement that employed to measure the an investment actual that has been adjusted for the risk associated with the investment.
Sharpe ratio can be calculated using the following formula:
Sharpe ratio = (Average fund rate - Average Risk Free rate) / Standard deviation of fund rate = (5.46% - 2.40%) / 15.05% = 0.20
a. Calculation of Treynor ratio
Treynor ratio refers to investment measurement that is calculated to show the risk of certain investments after the volatility of the market has been taking into consideration.
Treynor ratio can be calculated using the following formula:
Treynor ratio = (Average market return rate - Average Risk Free rate) / Beta = (1.96% - 2.40%) / 87.53% = –0.005
The answer is revenue stream.
Answer:
<h2>In the context of Consumer Theory or Indifference Curve involving two goods,the opportunity of any one good is computed by how much of the other good is foregone or sacrificed to purchase one more unit of that particular good.</h2>
Explanation:
- In this instance,when Bill's diner consumes 35 burgers and 25 hotdogs,its opportunity cost of additional hot dog=
.Therefore,initially Bill diner's opportunity cost of an additional hot dog is 1.4 units of burger.
- Now,when Bill's diner chooses to consume a combination of 25 burgers and 65 hot dogs,its opportunity cost of additional hot dogs=
approximately.Hence,Bill's diner is willing to sacrifice approximately 0.385 units of burger to consume an additional unit of hot dog. - Now,due to the change in consumption combination,the change in opportunity cost of additional hot dog=
units of burger.Notice,that here the opportunity cost of additional hot dog decreased from 1.4 units of burger to 0.385 units of burger as Bill's diner changed the consumption combination of both burgers and hot dogs.
Answer:
WA 1,682
LIFO 910
FIFO 2,260
Explanation:
![\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7DDate%26Cost%26Units%26Subtotal%5C%5C%24Jan%2020th%268%26400%263200%5C%5C%24April%2021th%2610%26200%262000%5C%5C%24July%2025th%2613%26280%263640%5C%5C%24Sept%2019th%2615%2690%261350%5C%5C%24Total%2610.51%26970%2610190%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We add the units purchase and the subtotal to get the total units available for sale.
Ending inventory physical units: 970 - 810 = 160 units
<u>Then, we calculate for each method:</u>
Weighted average:
cost of goods / available units = 10,190 / 970 = 10.51
160 units x 10.51 = 1,681.6
LIFO:
Ending inventory will be the oldest units:
160 units x 8 = 960
FIFO:
Ending inventory will be the newest units as the units are sold as soon as they come in
90 x 15 = 1,350
70 x 13 = 910
Total 2,260
Answer:
The broker is doing two different jobs; so it is okay to have two different licenses.
Explanation:
In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.