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Naya [18.7K]
3 years ago
11

In the Treynor-Black model, the contribution of individual security to the active portfolio should be based primarily on the sto

ck's _________. A. alphaB. betaC. residual varianceD. information ratio
Business
1 answer:
d1i1m1o1n [39]3 years ago
5 0

Answer:

The correct answer is letter "A": alpha.

Explanation:

Named after American economists Jack Treynor (<em>1930-2016</em>) and Fischer Black (<em>1938-1995</em>), the Treynor-Black model is a portfolio-optimization approach that presumes the market is highly efficient. According to the theory, investors accept the market price based on the idea that there is also additional information that can generate unusual returns. That phenomenon is called alpha.

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Creative Sound Systems sold investments, land, and its own common stock for $32.0 million, $14.8 million, and $39.6 million, res
Studentka2010 [4]

Answer:

Creative Sound Systems should report $18,800,000 as net cash flows from financing activities

Explanation:

Cash flow Financing activities are the funds that the business acquire or paid to finance its main activities, these involve borrowing and repaying short-term loans, long-term loans and other long-term liabilities.

From the question, Cash inflow from Issue of common share and Cash outflow from purchase of treasury stock are the only recognizable Financing activities

Particulars                                                                Amount

Cash inflow from Issue of common share              $39,600,000

Cash outflow from purchase of treasury stock     -$20,800,000

Net cash flows from financing activities              $18,800,000

7 0
3 years ago
Health Maintenance Organizations (HMOs) are MOST LIKELY associated with which of these types of insurance? A) life insurance B)
sleet_krkn [62]

Answer:

.

Explanation:

8 0
3 years ago
When the economy suffers a downturn and the incomes of many people decrease, vacationers are more likely to take car trips than
inysia [295]

Answer: Air travel is a normal good and vacation travel by car is an inferior good

Explanation: What is a normal good and what is an inferior good.

Normal goods are those goods for which the demand rises as consumer income rises. While inferior goods are goods whose demand increases when consumer income decreases.

This therefore means that the demand of inferior goods is inversely related to the income of the consumer.

From the question above, we can say that car trips are inferior goods while the air travel are normal goods.

3 0
3 years ago
Read 2 more answers
What type of body language are helpful when saying no to a situation
Roman55 [17]
Not slouching. having good eye contact. have good hand gestures. 
7 0
3 years ago
What is the purpose of writing a topic sentence?
Mnenie [13.5K]

Answer:

The correct answer is option C. To summarize the main point of the paragraph

Explanation:

A topic sentence is the most important part of a paragraph. The main purpose of a topic sentence is to provide a concise statement that reflects the purpose of the paragraph or the information that is going to be provided in the paragraph effectively.

It is usually the first sentence of a paragraph and becomes the opening statement of a paragraph in formal writings.

I hope the answer is helpful.

4 0
3 years ago
Read 2 more answers
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