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vfiekz [6]
3 years ago
13

The U.S. Treasury bill is yielding 3.0 percent and the market has an expected return of 11.6 percent. What is the Treynor ratio

of a portfolio that has a beta of 1.02, and a standard deviation of 12.2 percent?
Business
1 answer:
Setler79 [48]3 years ago
6 0

Answer:

Treynor ratio = <u>Market return - Risk-free rate</u>

                                  Portfolio beta

                      = <u>11.6 - 3.0</u>

                           1.02

                      = 8.43%

Explanation:

Treynor ratio is the ratio of risk-premium to portfolio beta. Risk-premium is the excess of market return over risk-free rate, Treynor ratio is used for measuring the performance of a portfolio.

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On January 1, 2018, M Company granted 90,000 stock options to certain executives. The options are exercisable no sooner than Dec
hram777 [196]

Answer:

$120,000

Explanation:

Given that,

stock options = 90,000

Each option can be exercised to acquire one share of $1 par common stock for $12.

Total Value of the option = stock options × fair value of the options

                                          = $90,000 × $5

                                          = $450,000

company to estimate that 10% of the options would be forfeited, so,

= 90% of Total Value of the option

= 0.9 × $450,000

= $405,000

2 out of 3 years = $405,000 × 2/3

                           = $270,000

=\frac{Total\ value\ of\ the\ options}{no.\ of\ years}

=\frac{450,000}{3}

= $150,000

Compensation expense (2019) = $270,000 - $150,000

                                                    = $120,000

6 0
3 years ago
A ____ is a source of revenue flowing into the firm.
diamong [38]
The answer is revenue stream.
3 0
3 years ago
Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo.
motikmotik

Answer:

a.                         Joplin Industries Inc.

             Absorption Costing Income Statement

                  For the Month Ended June 30

Sales                                                                        $81,000,000

Less: Beginning inventory           $4,387,200          

Cost of goods manufactured       <u>$45,756,000</u>

Cost of goods sold                                                 <u>$50,143,200</u>

Gross Profit                                                              $30,856,800

Selling and Administrative Expenses                    <u>$13,122,000</u>

Operating Income                                                  <u>$17,734,800</u>

b.                           Joplin Industries Inc.

                 Variable Costing Income Statement

                      For the Month Ended June 30

Sales                                                                        $81,000,000

Variable cost of goods sold                                   <u>$40,500,000</u>

Manufacturing Margin                                            $40,500,000

Selling and Administrative Expenses                    <u>$12,150,000</u>

Contribution Margin                                                $28,350,000

<u>Fixed cost</u>

Manufacturing cost                   $8,856,000

Selling and Admin Expenses   <u>$972,000</u>

Total Fixed cost                                                         <u>$9,828,000</u>

Operating Income                                                     <u>$18,522,000</u>

4 0
3 years ago
Which of the following statements regarding Federal Reserve independence is​ incorrect?
hichkok12 [17]

Answer:

The correct answer is option D

D. The​ 14-year non-renewable terms for governors effectively insulate the Board of Governors from political pressure

Explanation: Option D is incorrect regarding federal reserve independence.

8 0
3 years ago
Mack reynolds, the manager of the special products division, must decide whether to bid or not, and if intermodular semiconducto
REY [17]
"from" (and any subsequent words) was ignored because we limit queries to 32 words.
4 0
3 years ago
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