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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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Journalize the following transactions in the general journal: Sept. 1 Sold common stock for cash $60,000. 1 Paid rent for the mo
faust18 [17]

Answer: See explanation

Explanation:

September 1:

Debit Common stock $6000

Credit: Cash $60000

September 1:

Debit: Rent $1500

Credit: Cash $1500

September 3:

Debit: Cash $10000

Credit: Note payable $10000

September 3:

Debit: Cleaning Equipment $5,500

Credit: Cash $3,000

Credit: Account payable $2,500

September 4:

Debit: Supplies $4200

Credit: Cash $4200

September 10:

Debit: Cash $3500

Credit: Service revenue $3500

September 21:

Debit: Account receivable $3800

Credit: Service revenue $3800

September 23:

Debit: Account payable $2500

Credit: Cash $2500

September 28:

Debit: Bank $2800

Credit: Account receivable $2800

September 29:

Debit: Electricity expense $85

Credit: Electricity payable $85

September 30:

Debit: Wages $1950

Credit: Cash $1950

September 30:

Debit: Gasoline $275

Credit: Cash $275

September 30:

Debit Dividend $900

Credit Cash $900

3 0
3 years ago
A firm is considering a project with annual cash flows of $300,000. The project would have a five-year life, and the company use
stealth61 [152]

Answer:

$1,081,434

Explanation:

<em>At indifference point, the present value of cash outflow equals  present value of cash inflow.</em>

Present value of cash inflow = Annual cash inflow * PV annuity factor (12%, 5 years)

Present value of cash inflow = $300,000*3.60478

Present value of cash inflow = $1,081,434

So, the amount at which the firm would be indifferent between accepting or rejecting the investment is $1,081,434.

7 0
3 years ago
Lito works for a business that is part of a large corporation with many diverse business lines that operate autonomously. Lito’s
irinina [24]

Answer: Conglomerate structure

                           

Explanation: In simple words, conglomerate structure refers to the structure under which many entities operate in different industries under a single corporation. In other words, it is a different name for parent subsidiary relationship.

In the given case, Lito group owns different firms in different industries. Hence from the above we can conclude that the group uses conglomerate structure.

4 0
3 years ago
SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On March 9 of the current year,
Anon25 [30]

Answer:

treasury stock    382,000 debit

             cash                  382,000 credit

cash          342,500 debit

  treasury stock               274,000 credit

 additional paid-in TS       68,500 credit

cash          84,000 debit

  treasury stock                80,000 credit

 additional paid-in TS         4,000 credit

additional paid-in TS 72,500

Treasury Stock           28,000

<em>The Treasury Stock will be reported as a decrease to the equity.</em>

Explanation:

19,100 shares x $20 per share = 382,000

13,700 shares x $20 per share = 274,000

13,700 shares x $25 per share = 342,500

additional paid-in = 68,500

4,000 shares x $21 per share  =     84,000

4,000 shares x $20 per share =    (80,000)

          additional paid-in                   4,000

68,500 + 4,000 = 72,500 additional paid-in TS

TS 382,000 - 274,000 - 80,000 = 28,000

7 0
3 years ago
I am new to this, could anyone help me, I am from Peru and I do not endorse anything they tell me, someone could explain to me h
LenKa [72]

Answer:

okay

Explanation:

okay....no problem.

6 0
3 years ago
Read 2 more answers
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